Min­i­mum R20/hour wage from Jan­uary

Weekend Post (South Africa) - - News - – Reuters

South Africa’s new na­tional min­i­mum wage will take ef­fect from Jan­uary 2019, Pres­i­dent Cyril Ramaphosa said on Fri­day, en­sur­ing work­ers earn R20 an hour.

Ramaphosa last month signed into law the na­tional min­i­mum wage bill, part of ef­forts by the gov­ern­ment to tackle wage in­equal­ity.

The Na­tional Min­i­mum Wage Act sets the min­i­mum wage at R20 an hour, equal to R3,500 per month.

Sup­port­ers of the min­i­mum wage say it will re­duce in­equal­ity and stim­u­late eco­nomic growth as work­ers spend more. But crit­ics say it could lead to in­creased un­em­ploy­ment, al­ready at record highs, be­cause some em­ploy­ers won’t be able to af­ford to pay the min­i­mum wage.

The gov­ern­ment said it was a first step in ad­dress­ing the clam­our for a liv­ing wage.

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