THE newly gazetted National Minimum Wage (NMW) has drawn the ire of struggling employers who have complained that the 6.9 percent increase could threaten job security in the country.
Minister of Employment and Labour Thulas Nxesi announced yesterday that the minimum wage for each ordinary hour worked has been increased from R21.69 to R23.19 per hour for the year 2022 with effect from March 1.
The adjustment provides exceptions for several worker groups, including farmworkers and domestic workers as in previous years.
However, the department said that workers employed on an expanded public works programme were entitled to a minimum wage of R12.75 per hour.
“It is illegal and unfair labour practice for an employer to unilaterally change working hours or other employment conditions in order to implement the NMW.
“The NMW is the amount payable for ordinary hours of work and excludes payment of allowances (such as transportation, tools, food, or lodging), payments in kind (board or lodging), tips, bonuses, and gifts.”
Trade union Solidarity strongly condemned the new minimum wage, saying Nxesi should have scrapped the minimum wage altogether to instil a much more positive effect on the labour market and the economy.
Economic researcher at the Solidarity Research Institute, Theuns du Buisson, said it was inconceivable that the country with the highest unemployment on the planet continues to trample upon people's chances of employment.
“While the economy is still struggling to recover from the devastating impact of Covid-19 and the implementation of some of the most stringent lockdown measures in the world, it is absurd to increase our already irrational minimum wage by more than the inflation rate,” Buisson said.
“A further worrying consequence of a higher minimum wage could also be an increase in xenophobia and illegal labour practices. The minister is making it increasingly expensive for employers to legally employ South Africans, which automatically creates an incentive for some employers to make use of the services of illegal immigrants instead.”
Agri SA executive director Christo van der Rheede said the increase in the minimum wage drew concern to the ability of many farmers to continue operating their businesses profitably as the cost burden was not slowing down.
Van der Rheede said the likelihood of farmers operating at a loss was becoming more evident day after day and the government must create a conducive policy, cost and infrastructure environment to ensure profitable farming in South Africa.
“It is vital to stress that the alleviation of poverty does not solely rely on the increase in wages but should be designed in a way to supplement and reinforce other social and employment policies,” he said.
“Therefore, without an enabling environment for farms and farming businesses to remain sustainable and profitable, we run the risk of increasing unemployment and food insecurity.”
BUSINESS REPORT ONLINE