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The National Minimum Wage came into effect in January 2019.
A study by the National Minimum Wage Commission has uncovered lack of compliance with South Africa’s National Minimum Wage Policy by employers.
The National Minimum Wage was last year set at R27,58 per hour.
The study also found evidence suggestive of partial compliance in some instances. This has raised concerns as some employers often reduce working hours of their staffers in response to the National Minimum Wage.
The National Employers Association of South Africa ‘s CEO Gerhard Papenfus says, “An employer competes in the market with good employees. So, if you want to keep a good employee or if you want to retain the services of a good employee, you need to compete with others on the basis of wages. That’s how it works. But if that’s no longer the issue, if you can’t afford to pay whatever the amount is that the minimum wage prescribes, you’re not going to pay that amount. Why not? Well, because you can’t afford it.”
Papenfus says it comes down to affordability for employers.
“This is as simple as that. Money doesn’t fall from the air. And so, you know, there’s nothing you can do about it. I can only afford a lesser amount, I will pay a lesser amount. I cannot go anywhere as an employer and say please give me money to pay my employees more. I can’t do it,” he says.
