R3500 minimum wage can't cover basic household needs: PACSA

R3500 minimum wage can't cover basic household needs: PACSA

A local community organisation feels the new national minimum wage is not enough to assist workers break out of poverty. 

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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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