Neelam Rahim | neelam@radioislam.co.za

2 min read
07 January 2022 | 2:55 pm CAT

The minimum wage could be hiked by more than 8% if the National Minimum Wage Commission has its way. It has recommended an adjustment that would raise the pay by at least R25 per household.

While many argue that the minimum wage of R4000 a month is a small amount for the rising expenses, including all kinds of responsibilities, it is necessary to consider employer affordability.

In conversation with Radio Islam International, CEO of the National Employers Association, Gerhard Papenfus, said an increase in wages is non-negotiable. However, many small businesses may need more affordability and see the financial sense of an 8 percent increase in low-skilled workers.

“Followed by the question, is it worthwhile to still use manual labour or rather mechanise, leading the high unemployment rate in South Africa higher,” he added.

The matter is to reach a consensus by the 13th of January, 2023.

The minimum wage sustains not only the person themselves but also several other people in the household.

Papenfus suggests that more people are needed in the mainstream economy as a minimum wage is better than no wage.

Listen to the interview with Radio Islam Presenter and CEO of the National Employers Association, Gerhard Papenfus, below.