The proposed new minimum wage of R3500 per month will do little to improve the circumstances of existing workers‚ while further limiting access to the labour market for unemployed people.
This is according to analysts at the Institute of Race Relations (IRR).
Deputy President Cyril Ramaphosa announced the national minimum wage proposal on Sunday at the National Economic Development and Labour Council (Nedlac).
The proposal was presented by a panel of advisors appointed to advise Nedlac on the level at which the country’s national minimum wage should be set.
The institute’s analysts said over 50% of people in South Africa aged between 20 and 30 were not in employment‚ education‚ or training.
They said for people of working age without a university education the labour market absorption rate was below 50%‚ which is far off emerging market norms.
They said the proposed new minimum wage will make it much more difficult for people who are currently unemployed to ever find work‚ while serving as a new obstacle to the creation of small enterprises.
They also said the proposed wage‚ especially when sectoral exemptions are taken into account‚ will do very little to improve the socio-economic circumstances of existing workers.
The institute said it has been set at such a low level that it will further open the business community‚ the ruling party‚ and government to the accusation that they are promoting the exploitation of the poor.
“We expect that it will become a new rallying point for critics of the government and the business community.” — Tiso Black Star Group Digital
‘Proposed minimum wage will become new rallying point for critics of the government and business’: IRR
This is according to analysts at the Institute of Race Relations (IRR).
Deputy President Cyril Ramaphosa announced the national minimum wage proposal on Sunday at the National Economic Development and Labour Council (Nedlac).
The proposal was presented by a panel of advisors appointed to advise Nedlac on the level at which the country’s national minimum wage should be set.
The institute’s analysts said over 50% of people in South Africa aged between 20 and 30 were not in employment‚ education‚ or training.
They said for people of working age without a university education the labour market absorption rate was below 50%‚ which is far off emerging market norms.
They said the proposed new minimum wage will make it much more difficult for people who are currently unemployed to ever find work‚ while serving as a new obstacle to the creation of small enterprises.
They also said the proposed wage‚ especially when sectoral exemptions are taken into account‚ will do very little to improve the socio-economic circumstances of existing workers.
The institute said it has been set at such a low level that it will further open the business community‚ the ruling party‚ and government to the accusation that they are promoting the exploitation of the poor.
“We expect that it will become a new rallying point for critics of the government and the business community.” — Tiso Black Star Group Digital
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