Earners devote income to food

THE cost of a “survival basket” of food in South Africa at the beginning of 2024 is R1503, which is 6.07% more than last year, and will see minimum wage earners spend 34.5% of their earnings to buy food.

This is according to the Picodi. com study which looked at minimum wages in different countries; how prices of basic groceries increased; and how the cost of a “survival basket” compares to the minimum wage.

For the study, a basic grocery “survival” basket consisting of eight groups of products including bread, milk, eggs, rice, cheese, meat, fruits and vegetables was drawn up for one person for a one month period and the costs of it was added up.

For South Africa, the minimum net wage was R4 353 and the country ranked 44th out of 67 countries in terms of what percentage of earnings for minimum wage earners went towards food.

Professor Irrshad Kaseeram, from the University of Zululand’s economics department, said the inflation rate faced by low income households was much higher than those faced by those in the middle class and above.

“In my view, while the Picodi study might accurately cover the percentage of income devoted to food, it underestimates the actual inflation faced by marginal income earners,” he said.

Although fuel price increases were not transferred to taxi fares, transport costs have risen significantly since pre-Covid times and so has rent, he said.

“Thus, although the 9.4% minimum wage rise is welcomed it is far below the overall living costs of marginalised communities.”

Cosatu acting national spokesperson Matthew Parks said the National Minimum Wage (NMW) Act required the NMW Commission and the Minister of Employment and Labour to ensure that it is adjusted annually to ensure that it is protected from being eroded by inflation and retains its impact on poverty.