A National minimum wage for South Africa: recommendations on implementation and policy: National Minimum Wage Panel report to the Deputy President

25 Nov 2016
Minimum wage picture
25 Nov 2016

"The National Treasury fully supports the report and approach of the National Minimum Wage panel. In a statement, the Minister of Finance, Pravin Gordhan, says that “the report represents a balanced, thoughtful and constructive approach to addressing the challenge of inequality and unemployment . It represents an important milestone in our governments efforts over the years in this regard. The report also takes account of the need to support employment creation”.

"The Panel carefully considered the proposals, research and evidence from the social partners and interested parties and after much deliberation unanimously agreed that the level of R20 per hour adjusted to a monthly wage of approximately R3,500 was a starting level for the national minimum wage that would maximise benefits to the poor and minimise any possible disemployment effects. A lower number would have a much smaller effect on poverty, and a higher number would likely start causing unemployment consequences. The Panel believes that a clear number (rather than a range) will be simpler and easier to communicate and implement."