Pretoria - Cabinet has applauded all social partners at the National Economic Development and Labour Council (NEDLAC) on the historic agreement on the introduction of a national minimum wage.
Deputy President Cyril Ramaphosa recently announced that the national minimum wage has been set at R20 per hour or R3500 per month for those that work a 40-hour week.
Those who work a 45-hour week will have their minimum wage set at R3900. The minimum wage of R20 an hour comes into effect from no later than May 2018.
In a statement issued on Thursday, Cabinet said the agreement on a national minimum wage and other measures to strengthen labour stability and collective bargaining, is an important step in creating a more equal, just and prosperous society as envisaged in the National Development Plan (NDP).
“The national minimum wage, which is a floor below which no worker may be paid, will significantly improve the lives of millions of low paid workers and begin to address the challenge of wage inequality,” Cabinet said.
Cabinet added that the wage has been set at an initial level that will make a real difference in the lives of ordinary South Africans, while minimising any adverse effects on employment.
Businesses that are unable to afford the national minimum wage may apply for a temporary exemption, while measures are being considered to assist fragile sectors of the economy. – SAnews.gov.za
