South Africa has announced the introduction of 3,500 rand ($260) national minimum wage effective from 2018.According to Reuters, Deputy President Cyril Ramaphosa made this announcement on
Wednesday, February 8 while speaking to pressmen after a negotiation by the government of South Africa and the Labour unions.South Africa raises national minimum wage to 3,500 rand ($260)
Supporters of a minimum wage say it can stimulate growth as workers can spend more, as well as reducing inequality. However, critics have warned that this might lead to unemployment as employers might be unable to afford higher wage bills. Ramaphosa said the national minimum wage, which equates to 20 rand ($1.50) per hour, would come into effect in May 2018.Ramaphosa said: “The balance we have sought to strike is that it must not be too low, so that it doesn’t affect the lowest paid workers, but not too high that it leads to massive job losses.”Recall that the Nigeria Labour Congress (NLC) and Trade Union Congress of Nigeria called on the federal government to increase the minimum wage from N18,000 to N56,000. Mr Peters Adeyemi, deputy president of the NLC made the call for increment in Abuja on Friday, April 29, 2016. Several months after the call for this increment, Nigeria is still stuck at N18,000 minimum wage.
Supporters of a minimum wage say it can stimulate growth as workers can spend more, as well as reducing inequality. However, critics have warned that this might lead to unemployment as employers might be unable to afford higher wage bills. Ramaphosa said the national minimum wage, which equates to 20 rand ($1.50) per hour, would come into effect in May 2018.Ramaphosa said: “The balance we have sought to strike is that it must not be too low, so that it doesn’t affect the lowest paid workers, but not too high that it leads to massive job losses.”Recall that the Nigeria Labour Congress (NLC) and Trade Union Congress of Nigeria called on the federal government to increase the minimum wage from N18,000 to N56,000. Mr Peters Adeyemi, deputy president of the NLC made the call for increment in Abuja on Friday, April 29, 2016. Several months after the call for this increment, Nigeria is still stuck at N18,000 minimum wage.
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