BL Premium reports that economists warned on Tuesday that the recommendation by labour department advisers to hike the minimum wage for farm and domestic workers by double digits would lead to a jobs bloodbath.
The National Minimum Wage Commission — comprising independent experts and representatives from business, labour and community — has recommended increases of 16% and 20% for farm and domestic workers respectively. The commission proposed that the minimum wage for farmworkers, currently R18.68 an hour, be aligned with the proposed new national minimum wage of R21.69 an hour in 2021. It recommended that domestic workers’ wages, currently R15.57 an hour, be increased to 88% of the national minimum wage in 2021, before being aligned with the minimum wage by 2022. “The majority proposal for the amount of the minimum wage for domestic workers and farmworkers would amount to an increase of about R450 per month for a domestic worker and about R350 per month for a farmworker,” the commission indicated in its report. But the proposals have raised worries among economists and minorities in the commission that employers would be unable to shoulder the additional costs. Three business representatives argued the proposal would lead to “dramatic job losses”. They supported the need to increase farm and domestic workers’ wages, “but in a sustainable way”. A department of employment & labour acting spokesperson said employment & labour minister Thulas Nxesi would decide on the recommendations based on submissions received.
- Read the full original of the report in the above regard by Luyolo Mkentane at BusinessLive (paywall access only)
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