PRESS RELEASE

13 January 2025

NATIONAL MINIMUM WAGE

RECOMMENDED INCREASE

NEASA’s COMMENTARY

Today, the National Employers’ Association of South Africa (NEASA) submitted written representations in accordance with the National Minimum Wage Commission’s (‘the Commission’) invitation for comment on their annual report. The Commission’s recommendation to the Minister of Employment and Labour is a CPI plus 1.5% increase to the National Minimum Wage (NMW).

It is NEASA’s stated position that Government must let the market dictate the wage which an employer is willing and able to pay its employees and not artificially, legislatively set it outside of free market powers.

If Government stops interfering with the free functioning of the market and rather allow business to operate organically and competitively, it will inevitably lead to economic growth and increased employment opportunities.

The current minimum wage dispensation dictates that an employer may not appoint a person at a rate below the minimum wage, even with the consent of the person. This robs such a person from earning at least some sort of living and potentially becoming a productive employee - condemning him to a life of poverty, as any employer who pays less than the prescribed minimum wage, even if it exceeds all other state grants by far, will be in contravention of the law and liable to penalties.

NEASA notes the irony in the Commission’s annual report in which a 67% majority of stakeholders, (including businesses, employer representatives, trade unions, NGOs and other interested parties) opposed increases to the NMW. NEASA concluded that the investigation into the adjustments to the NMW had become nothing more than a theoretical exercise that does not take cognisance of the inputs of affected parties.

While the notion of an NMW is of little relevance to more affluent employers, many of which are situated in the economic hubs of South Africa, the greatest impact is on micro-businesses and start-ups, mainly in rural areas, where unemployment is rife.

South Africa is in dire need of economic stimulation. NEASA concludes in its submission that the best method to achieve this is by fostering policies conducive to economic- and business growth, by implementing laws which encourage employment – allowing citizens to work, earn a living and become productive members of society.

To read NEASA’s full submission to the Commission click here.

ISSUED BY

Gerhard Papenfus

Chief Executive (NEASA)

MEDIA CONTACT

Charis Esema-Onaolapo

Media Liaison (NEASA)

083 393 4435

media@neasa.co.za