The Government of South Africa has approved an increment in its National Minimum Wage for workers from 20,76 Rand to R21,69 Rand (577 naira) per hour.
This was disclosed by the country’s Employment and Labour Minister, TW Nxesi, in a statement on Tuesday.
Mr. Nwexi said the increment is “for the year 2021” and it is “with effect from 01 March 2021.”
The Minister said 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.
He said “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.
“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” he said.
Mr. Nwexi 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.