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National Minimum Wage: NEASA submits representations to Commission.

Oct 5, 2022

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NATIONAL MINIMUM WAGE
NEASA SUBMITS REPRESENTATIONS TO COMMISSION

Dear employer

On 9 September 2022, the National Minimum Wage Commission (‘the Commission’) published an invitation for written representations by the public, regarding the review of the National Minimum Wage (NMW) for 2023, and any possible adjustments thereto. These representations are to be considered by the Commission, prior to the drafting of its annual recommendation report to the Minister of Employment and Labour.

NEASA has, after publication of this invitation, conducted a survey among employers, in order to determine what the effect of any possible adjustments to the NMW will be on their businesses, and the extent of their ability and capacity to absorb or withstand an increase. The results of this survey were processed and included in NEASA’s submission to the Commission on 30 September 2022.

In NEASA’s submission, it was clearly indicated to the Commission that, in light of the current economic climate in South Africa, the lingering effects of the Covid-19 lockdown, the electricity woes due to Eskom’s complete failure, as well as the increased prices of petrol and diesel, amongst other issues, an increase to the NMW will be catastrophic to South African businesses and the economy in general.

In summary, the following factors were discussed:

  • lockdown aftermath;
  • electricity woes;
  • policy/red-tape;
  • the unemployment crisis (South Africa already has the highest unemployment rate in the world);
  • inflation;
  • the cost of living;
  • the need to retain the value (buying power) of the NMW;
  • the interrelation between the Gross Domestic Product (GDP) and the NMW;
  • wage levels and collective bargaining outcomes;
  • productivity;
  • ability of employers to carry on their businesses successfully;
  • the operation of small, medium or micro-enterprises and new enterprises;
  • the likely impact of the recommended adjustment on employment, or the creation of employment;
  • the inputs from affected employers; and
  • the morality of a government dictating a NMW.

We will keep employers abreast of developments in this regard.

To view NEASA’s submission, please click here.

For more information:
NEASA Media Department
media@neasa.co.za 

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