JUST IN: South Africa Increases Minimum Wage To N105,400 Monthly

The Government of South Africa, on Tuesday, approved an increment in the National Minimum Wage for workers from 20,76 Rand to R21,69 Rand (577 naira) per hour.

Based on South Africa’s Basic Conditions of Employment Act, workers work 9 hours per day and for 21 consecutive days which puts their NMW at (455.49R) 105, 400 naira.

The country’s Employment and Labour Minister, TW Nxesi, disclosed this in a statement seen by our correspondent, adding that the increment is “for the year 2021” and it is “with effect from 01 March 2021.”

Nxesi said that the decision of government to adjust workers’ salaries was hinged on certain prevailing circumstances having direct impact on the citizens as well as the economy.

“In considering the annual adjustment, the Commission consider the following factors: inflation, the cost of living, and the need to retain the value of the minimum wage; gross domestic product; wage levels and collective bargaining outcomes; productivity; ability of employers to carry on their businesses successfully; the operation of small, medium or micro-enterprises and new enterprises; likely impact of the recommendation adjustment on employment or the creation of employment,” he said.

He said that for “a transitional phase, the farm worker sector has been aligned with the NMW rate of R21,69 per hour”, while domestic workers sector will be entitled to R19,09 per hour.

But   he added that workers on expanded public works programme will get “R11,93 per hour”.

In Nigeria, workers minimum wage was previously fixed at 18,000 naira monthly, but the President Muhammadu Buhari administration on April 18,2019, signed into law a bill increasing the nation’s minimum wage to 30,000 naira.

But while some states are already paying the minimum wage, some are yet to pay such amount.

The South African economy is said to be the second largest in Africa behind Nigeria, but the most industrialized, technologically advanced and diversified economy on the continent.

While Nigeria remains the largest economy in Africa by Gross Domestic Product (GDP), South Africa is the strongest in Africa because of its massive infrastructure development, investment inflow and foreign exchange earnings.