National minimum wage to benefit millions of employees

The national minimum wage of R3500 per month will improve the earning power of just over 6-million workers in a multitude of sectors.

However‚ it could take up to two years for domestic and agriculture workers — after the minimum wage come into effect next year — to benefit from the minimum wage.

 READ:Salary check – What domestics earn compared with other jobs

On Wednesday‚ parties to the National Economic Development and Labour Council (Nedlac) — excluding the Congress of South African Trade Unions — signed the agreement on the national minimum wage and labour market stability.

The national minimum wage of R20 per hour or R3500 for a 40-hour week would take effect from no later than May next year.

Current statistics show that 6.2-million workers‚ or 47.3% of the workforce‚ currently earn below the proposed minimum wage of R3500 per month.

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These include 90.7% of domestic workers‚ 84.5% of agricultural workers‚ 54.6% of the workers in the construction sector and 48.2% of wholesale and retail workers.

Statistics from Stats SA‚ in its report on Labour Market Dynamics in 2014‚ also show that 60% of workers in the clothing‚ textile‚ leather and furniture manufacturing sectors earned below R3500 per month

A small proportion of workers in the electricity‚ gas and water supply industry‚ and in mining currently earn below the proposed minimum wage.

The social partners in Nedlac have agreed that when the national minimum wage is introduced‚ domestic workers will be paid 75% of the minimum wage and agricultural workers will be paid 90% of the minimum wage.

The wages to be paid by the domestic workers are currently set by the Department of Labour.

For the 2016-2017 year‚ the department has set the wages to be paid by employers from between R2205 and R2422 per month for employees who work more than 27 hours a week.

It is proposed that the domestic and agricultural sector work will be brought up to 100% of the national minimum wage level within two years pending research by the National Minimum Wage Commission on this timeframe.

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