R3500 minimum wage can't cover basic household needs: PACSA
Updated | By Shaun Ryan
A local community organisation feels the new national minimum wage is not enough to assist workers break out of poverty.
The Pietermaritzburg Agency for Community Social Action (PACSA) has been crunching the numbers since Deputy President Cyril Ramaphosa announced the new minimum wage of R20 an hour - or R3500 a month, last week.
Ramaphosa himself stressed that the new amount is not yet a living wage.
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PACSA's Mervyn Abrahams says unemployment levels mean one minimum wage salary is expected - on average - to support a household of four people.
"So there's an expectation - that they are at least able to pay for the basic needs, goods and services that the households need. And of course the primary thing that households need to acquire - is a basket of food," he said.
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Abrahams says R3500 barely covers nutritious food.
"According to the PACSA food price barometer which we monitor on a monthly basis, for a household of four to just procure a basic level of nutrition per month, will cost R3308," he said.
He says transport costs and services like lights and water - also need to be taken into consideration.
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