Warning that minimum wage hike leaves govt ‘between devil and deep blue sea’
A labour expert says the government may not have gone far enough with the latest increase in the national minimum wage, but believes tough economic conditions may have left little room for manoeuvre.
"It's between the devil and the deep blue sea, because if you put it up to say R50 per hour, which is properly becoming more sustainable, we will lose hundreds of thousands of jobs," says Michael Bagraim of Bagraim Attorneys.
From next month, the minimum wage will increase by R1.44 to R30.23 per hour.
It's a 5% increase for workers, including those employed on farms and those who help us in our homes.
ALSO READ: South Africans still struggling to put food on the table
Bagraim says he believes the government is doing a reasonable job, taking into consideration the fragile employment market.
“ So, you've got to work out, either you earn no wage per hour or a minimum wage, which is unsustainable. But there, you must understand, we've got 40% unemployment in South Africa today. You don't want to push it up to 50% or higher. And even when you look at the previously disadvantaged areas for the youth, we've got anything up to 80% unemployment.
“If that's the case, imagine if you push the minimum wage up much higher, we will then have a hundred per cent unemployment. So what is it? Where do you draw the line? Do you have nought rand per hour or do you have R31 per hour?"
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