Does it make a difference for low-income consumers if they earn the national minimum wage while it is set at such a low level?
The yearly discussion around increasing the minimum wage has intensified as the National Minimum Wage Commission calls for public submissions on the increases for 2024. Photo: iStock
Employers are already under pressure to hike their wage bills as inflation pushes workers beyond the minimum wage bracket to negotiate for better pay to match the rising cost of living.The Pietermaritzburg Economic Justice and Dignity Group calls the minimum wage a poverty wage because it hurts workers, reduces productivity in the workplace and slows down economic growth.
It is clear that the minimum wage does not make any difference to how poor people are forced to live. The minimum wage is never increased to accommodate the cost of living.Is growing the employment rate more important? Industries that contributed the most to employment are construction, that added 104 000 jobs, trade that added 92 000 jobs and community and social services that added 63 000 jobs.
“Increasing the minimum wage should be a balancing act that takes into account the need to reduce poverty and inequality considering high inflation rates, but still prevent a situation where small businesses, which are the backbone of the economy, can no longer afford labour costs.”
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