'We wanted a minimum wage that would make an impact' - Ramaphosa | Fin24
 
  • Still falling

    Annual consumer price inflation has dipped to its lowest level in 9 years.

  • Sabotage at Eskom

    President Cyril Ramaphosa says sabotage contributed to power cuts earlier in the week.

  • Digital Banking

    TymeBank says it will be switching gears in a bid to triple its size by the end of 2020.

Loading...

'We wanted a minimum wage that would make an impact' - Ramaphosa

Nov 20 2016 18:42
Jeanette Chabalala

Johannesburg - The panel tasked with determining the proposed minimum wage said they wanted to set a national minimum wage that would "have an impact".

Deputy President Cyril Ramaphosa announced on Sunday that the proposed national minimum wage is R3500 per month, amounting to R20 per hour.

Ramaphosa, in his capacity as chair of the Committee of Principals of the National Economic Development Council (Nedlac) said this would need to be agreed upon by social partners.

READ: Proposed minimum wage is R3500 per month

"In the end, we don't want a national minimum wage... that would be so low that [it] wouldn't make an impact," he told reporters in Rosebank. 

He said the fact that 47% of South Africans earned below R3500 was something the country should be concerned about.

Professor Imraan Valodia, head of the seven-person panel, said the NMW should be announced as soon as possible.

The country would have a two-year adjustment process which would give them time to implement and evaluate the evidence, he said. 

The committee was comprised of leaders in labour, business, government and communities, which includes members of the Advisory Panel. 

They consulted more than 60 research reports. They also met with social partners and experts from small business, youth, care work and the informal sectors. 

ALSO READ: Labour pact could help avert a credit downgrade

Labour Minister Mildred Oliphant said the minimum wage was meant to strengthen the collective bargaining. 

In March this year Ramaphosa said a national minimum could go a long way to provide a much-needed injection into SA's economy. 

In his view the country is progressing well, compared to other countries like Germany and Brazil.

Read Fin24's top stories trending on Twitter:

cyril ramaphosa  |  labour  |  nedlac  |  trade unions  |  minimum wage
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Voting Booth

What do you think about private healthcare in SA?

Previous results · Suggest a vote

Loading...