The proposed national minimum wage increase of 1.5% plus inflation for next year has been described as "bad news" for the economy, that would further affect the unemployed.
The National Minimum Wage Commission proposed the hike in minimum wages in a notice published in the Government Gazette this week. The minimum wage currently stands at R27.58 per hour, but based on the November consumer price index (CPI) of 2.9%, the minimum wage for 2025 could be around R28.50. The final amount would be calculated using the CPI at the time of implementation on 1 March.
Efficient Group chief economist Dawie Roodt described the hike as "bad news", not only for the economy but the unemployed who still have to enter the job market at the lowest level.
Director of Pan-African Institute for Evidence and professor of practice at the University of Johannesburg Pali Lehohla said the decision to hike minimum wage was the right decision, but it would lead to serious job losses.
However, organised labour has welcomed the commission's announcement as a step in the right direction. Cosatu parliamentary coordinator Matthew Parks said although it fell short, the increase was "still okay".
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