A proposed increase to South Africa's minimum wage, particularly for domestic workers, has sparked controversy. While the government argues the increase is necessary to combat inflation, the Institute of Race Relations (IRR) warns of potential job losses, citing past data showing a decline in employment linked to minimum wage hikes. The IRR advocates for a 25% reduction in the minimum wage to revive the job market. Meanwhile, the South African Federation of Trade Unions (SAFTU) deems the proposed increase inadequate and calls for a 'living wage' of around R15,000 per month.
Too much or not enough? 2025’s proposed minimum wage increase equating to R5,2k pm – particularly to domestic workers – has sparked debate.A proposal to increase South Africa’s minimum wage, particularly for domestic workers, has been strongly condemned by the Institute of Race Relations , citing hundreds of thousands of job losses over the years.
The IRR references the Development Policy Research Unit , which found that 4.8% to 8.1% of low-wage workers have been rendered jobless by the NMW since 2019. This excludes the significant repercussions of the Covid-19 lockdown. “The cost of essential goods and services continues to rise, necessitating wages that reflect the actual cost of living.”
In place of a national minimum wage, SAFTU is proposing a “living wage,” which they estimate to be around R15 000 per month.Kaizer Chiefs legend Doctor Khumalo says fans should not judge striker Tashreeq Morris before he even kicks a ball for Amakhosi.
MINIMUM WAGE JOBS INFLATION SOUTH AFRICA LABOR MARKET