The Citizen asks whether the new living wage of R15,000 per month is enough to live a decent life. A living wage is not the same as the national minimum wage (NMW) that employers must pay workers according to law.
By contrast, employers are encouraged to offer a living wage voluntarily instead. Ines Meyer of the Living Wage South Africa Network explained that the living wage was a wage that was sufficient for a worker to provide themselves and their families with the basic necessities of life and save something for the future or to cover unforeseen emergency expenses. The NMW is R27.58 per hour, R220.64 for an 8-hour day and R4 633,44 for an average 21-day working month. The new living wage was announced at a meeting of the University of Cape Town’s SARChI Chair in Creation of Decent Work and Sustainable Livelihood. Meyer advised: “Data we collected from working individuals across South Africa between November 2023 and January 2024 establishes that workers living in urban areas require at least R15,000.00 per month to live a decent life.” Unfortunately, Meyer noted, some employers saw even the NMW as a financial burden, let alone the costlier living wage. They argue it makes an ample workforce too expensive, resulting in higher unemployment. However, Meyer disagreed and pointed out: “International living wage research shows that workers who can cope financially are more motivated, more productive and less prone to absenteeism. This benefits their employers, who offset their costs through greater output to meet market demand. So far, there is no evidence to suggest that providing decent incomes increases unemployment.”
- Read the full original of the report in the above regard by Ina Opperman at The Citizen
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