South Africa’s minimum wage bill signed into law by Ramaphosa, what you need to know

PUBLISHED: Mon, 26 Nov 2018 15:32:47 GMT
Share

JOHANNESBURG (Reuters) – South Africa’s President Cyril Ramaphosa has signed into law the national minimum wage bill, his office said on Monday, part of efforts by the government to tackle wage inequality in Africa’s most industrialised economy.

The National Minimum Wage Act sets South Africa’s minimum wage at 20 rand ($1.45) an hour, equal to 3,500 rand per month. The law will come into force on a date to be determined by Ramaphosa, the presidency said.

Supporters of the minimum wage say it will reduce inequality and stimulate economic growth as workers spend more.

But critics say it could lead to increased unemployment, already at record highs, because some employers won’t be able to afford higher wage bills.

Sign Up for Our Newsletter Daily Update

Get the best of CNBC Africa sent straight to your inbox with breaking business news, insights and updates from experts across the continent.
Get this delivered to your inbox, and more info about about our products and services. By signing up for newsletters, you are agreeing to our Terms of Use and Privacy Policy.

Thousands of union members protested against the proposed minimum wage in April, saying it was too low. [nL8N1S23R9]

Ramaphosa’s office said in a statement that while the national minimum wage will not end income inequality, it was a first step towards adressing the clamour for a living wage.

($1 = 13.8072 rand)