Minimum wage up for review today
Bonte Seepi | Wednesday March 4, 2015 11:55
Minister of Labour and Home Affairs Edwin Batshu yesterday informed parliament that the minimum wage determination was a consultative process, which involved both the workers and employers representatives.
Batshu explained that when considering the question on whether to adjust or abolish minimum wage for any category of workers, the board takes into account certain provisions in the Employment Act.
“Section 137 of the Act provides guidelines on the necessity or expediency of adjusting or abolishing minimum wages in respect of any category of employees in any trade, section of trade, and industry”, he said.
Batshu explained that some of the provisions taken into account include the needs of the employees concerned and their families, taking into consideration the general level of wages in the country, the cost of living, and any social security benefits and the relative living standards of other social groups.
Other provisions looked at are the desirability of eliminating discrimination between the sexes in respect to wages for equal work and economic factors including the requirements for economic development, levels of productivity and the desirability of attaining and maintaining a high level of employment.
Batshu noted that guidelines also provided in the Revised National Policy on Incomes, Employment, prices and profits, Government Paper of 2005 highlighted additional factors of enforceability of minimum wages and employers ability to pay the minimum wage.
He told parliament that the current minimum wages were determined by government on May 30, 2014 in consultation with the Board, which comprised of representatives of workers, employers, government and independent members.
“For the past three years the minimum wages were increased by 9 percent in 2012, 7.1 percent in 2013 and 8 percent in 2014 except in the agricultural sector where the minimum wage was increased from P500 to P550 per month”, he said.