Did South Africa’s Minimum Wage Hike Affect Jobs?
Understanding the Impact of South Africa’s 2024 Minimum Wage Increase
See how South Africa’s 2024 minimum wage rise affected employment and wages, using data from the government, and reviews from analysts.
Hey there! Therefore in March 2024 South Africa increased its National Minimum Wage (NMW) by 8.5%, to reach at R27.58 per hour, the largest real adjustment since 2019.
You might be wondering: does this significant increase lead to the loss of jobs or less working hours? Well, as Development Policy Research Unit (DPRU) at University of Cape Town have recently reported it… no they are not. Instead, they saw employment levels drop by only a small magnitude implying the hike did not severely affect employment levels.
But here’s the kicker: Despite the bump up in wages, it is worth pointing out that around one fifth of the 5.4 million workers who should have received a boost in wages, did so.
This raises some concerns on compliance – are employers unmoving or is enforcement lacking?
On the other hand the employees that were lucky to receive the raise, had their wages boosted by an average of 19 percent.
Not too shabby, right?
So, what’s your take? In your opinion is the increase as the NMW hike a good thing, no are there more important things to address? Feel free to drop your thoughts in this part of the page and let’s bring it on!
