National minimum wage set to increase

Die Vryburger

National minimum wage set to increase
National minimum wage set to increase - Image - Die Vryburger

Employers will have to dig deep into their pocket next year to keep up with the national minimum wage.

Deputy President Cyril Ramaphosa earlier this year gave the green light for the national minimum wage to come into effect in May next year and that it will probably be R3 500 a month for permanent workers.

Now the Cabinet has approved draft legislation whereby the hourly minimum wage will be fixed at R20 per hour.

Apparently, credit rating agencies said that a minimum wage could help stabilize the labor market and help reduce the number of strikes in the country. Labor experts do not agree since they foresee significant layoffs occurring because employers in the current weak economic climate will not be able to pay the salaries. Also, few strikes take place over salaries, but slightly more about service delivery.

Read the original article in Afrikaans on Die Vryburger

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