Skip to main content

While Nigeria’s Minimum Wage Stands At $60, South Africa Introduces $260 Minimum


Nigeria’s current minimum wage is N18,000 ($60) with organised labour asking it be increased to at least N50,000 ($166), despite several state and local governments defaulting on the existing amount.
The Nigerian government has not acceded to labour’s request amidst a biting recession that has crippled Africa’s largest economy.
Workers have meanwhile complained the N18,000 is way below a living wage and cannot meet basic needs of workers.
Supporters of a South African minimum wage say it can stimulate growth as workers can spend more, and reduce inequality.
Critics say it could lead to increased unemployment as employers will be unable to afford higher wage bills.
Credit ratings agencies have said agreeing a minimum wage would help Africa’s most industrialised economy hold onto its investment-grade rating by stabilising the labour market and reducing the number of strikes.
The balance we have sought to strike is that it must not be too low, so that it doesn’t affect the lowest paid workers, but not too high that it leads to massive job losses,” Mr. Ramaphosa told a news conference.
Mr. Ramaphosa said the national minimum wage, which equates to 20 rand (1.50 dollars) per hour, would come into effect in May 2018.
Businesses that are unable to afford the minimum wage would be permitted to apply for an exemption of up to 12 months, he said.
The Treasury had also thrown its political weight behind the policy initiative.
Chief economist at Nedbank, Dennis Dykes, said the agreement was a sign of an improving relationship between labour, business and government, but warned that its implementation needed to be monitored.
“It is by no means certain this will lead to job creation.
“It needs to be watched carefully for any negative effects,” Mr. Dykes said.
Monthly earnings for employees averaged 18,045 rand (1,200 dollars) per month in May 2016, according to Statistics.
Many workers earn far less than that, with domestic workers and farm labourers among the lowest paid.
Some unions had asked for a minimum wage of as much as 4,500 rand.
South Africa’s mining sector was brought to its knees by a crippling five-month stoppage over pay in 2014,pushing the economy to the brink of a recession.
South Africa’s unemployment rate hit its highest level on record, 27.1 per cent of the workforce, in the third quarter of 2016, and it remains amongst the world’s most unequal societies.

http://www.premiumtimesng.com/news/headlines/223035-nigerias-minimum-wage-stands-60-south-africa-introduces-260-minimum-wage.html

Comments

Post a Comment

Popular posts from this blog

FG Secures $7.5bn Loan From China For Rail Project

The Federal Government has secured $7.5 billion loan for the construction of standard rail gauge from Lagos to Kano, an official has said. The $7.5 billion is part of the $30 billion loan the Federal Government seeks to take and for which it has sought approval from the National Assembly. The Minister of Transportation, Rotimi Amaechi, who disclosed this on Monday at the North Central Town Hall meeting held in Ilorin for the people of Kogi, Niger and Kwara states, urged Nigerians to impress it on the National Assembly to approve the loan request so that the Federal Government can go ahead with the project. But the Senate in a statement by its spokesperson, Aliyu Abdullahi, on Wednesday in Abuja, said that the minister’s claim was not only false but misrepresenting and contradictory to available facts. It insisted that the minister must withdraw the claim. According to Amaechi, the loan was secured from a Chinese bank and the ministry is waiting for approval of the National Asse...
Post a Comment
Read more

Photo Of The Longest Yam In Nigeria Harvested In Delta State

This is a giant yellow yam called or okpai in ukwuani and igangan in yoruba. This yam was harvested at12 months old. It took the farmers three days to harvest the longest one. These yam was produced in umuaja, ukwuani local government, delta state, Nigeria.
Post a Comment
Read more

Presidency Staff On Standby For Buhari's Return

Presidential aides were on Friday put on standby over the imminent return of President Muhammadu Buhari from London, United Kingdom. Buhari, who left Nigeria on January 19, was initially scheduled to return to the country last Sunday in preparation for resumption to office last Monday. However, the Special Adviser to the President on Media and Publicity, Mr. Femi Adesina, later issued a statement announcing that Buhari had notified the National Assembly of his decision to extend his vacation. Adesina had attributed the extension to the need for the President to wait behind and receive the results of medical tests which he had undergone on the advice of his doctors. Sources at the Presidential Villa, Abuja told one of our correspondents on Friday that Buhari was being expected this weekend. The sources said that presidential aides and officials of the Protocol Unit, as well as security operatives, had been put on the alert over the President’s imminent arrival. One of the so...
Post a Comment
Read more