A National Minimum Wage of R3 500 is too low and could trap millions of workers in continuing cycles of poverty
The low proposed National Minimum Wage of R3 500 per month is not enough for workers to support their families, nor does it address our historical racial wage structure. After this figure has been legislated, we suspect that it will institutionalise South Africa’s low-wage trajectory and deepen income inequality. Read the Media Statement here
Wages are typically increased per the Consumer Price Index, headline inflation figure. Low-income households tend to experience inflation at a higher level than reflected in headline inflation and this will continue to trap working families in poverty. Unless the National Minimum Wage is set at a level which takes us out of this low-wage trajectory; it might be better not to have a National Minimum Wage of R3 500 because it will put back the struggle of workers for decades.