The South African Federation of Trade Unions (SAFTU) strongly condemns employers who fail to comply with the National Minimum Wage Act. We call on the Department of Employment and Labour to take swift and decisive action to enforce compliance, ensuring that unscrupulous employers do not undermine workers’ hard-won gains.
The National Minimum Wage Commission recently conducted a study to assess the short-term effects of the March 2024 increase in the National Minimum Wage—the most significant adjustment in real terms since the Act’s introduction in 2019. The study revealed widespread employer non-compliance, with some employers increasing wages only partially toward the legislated figure. In contrast, others responded by reducing workers’ hours to offset the impact on their balance sheets.
The findings also debunk claims by detractors that the national minimum wage harms the economy. The study found that the 2024 wage increase resulted in minimal job losses, reinforcing SAFTU’s long-standing position that a national minimum wage is not detrimental to economic growth. We reject the notion that workers’ livelihoods must be sacrificed for economic development, nor do we accept the flawed argument that lower wages attract investment and stimulate the economy. South African capitalism has long been defined by suppressed and poverty wages, which has never led to sustained economic growth. Suppressing workers’ wages further exacerbates inequality and economic stagnation in an economy with low domestic demand.
In a country plagued by precarious work and poverty wages, it is unacceptable for employers to undermine the national minimum wage policy, depriving workers of their already insufficient earnings. Therefore, we urge the Department of Employment and Labour to enforce compliance with the Act rigorously.
THE INADEQUACY OF THE MINIMUM WAGE AND THE PROPOSED INCREASE FOR 2025
Following its study, the National Minimum Wage Commission has recommended a 1.5% plus CPI increase to the national minimum wage for 2025. This adjustment will raise the hourly minimum wage from R27.58 to R28.79, translating to a monthly income of R5,182.20 for a full-time worker. While SAFTU supports the principle of a national minimum wage, we have consistently maintained that the current wage levels are inadequate to sustain workers and their families.
The cost of essential goods and services continues to rise, necessitating wages that reflect the actual cost of living. The Pietermaritzburg Economic Justice and Dignity Group (PMBEJD) reported that the price of a household food basket surged from R3,199.86 in 2019 to R5,383.38 in December 2024—a staggering 68% increase. A worker earning the proposed minimum wage would still face a R201.18 shortfall after purchasing only food without accounting for transport, electricity, and other necessities.
More alarmingly, food price inflation has outpaced the general Consumer Price Index (CPI), highlighting the inadequacy of CPI as a benchmark for wage negotiations.
The PMBEJD affordability index illustrates the severe hardship imposed on the working class by stagnant wages and soaring living costs. Many households have been forced to cut back on food, leading to widespread malnutrition. The National Food and Nutrition Security Survey by the Human Sciences Research Council found that only 41.9% of surveyed households maintained acceptable diets, while 17.5% were food insecure.
Escalating electricity costs further compound the crisis. Eskom has proposed a 36.15% tariff hike for 2025, which, if approved by the National Energy Regulator of South Africa (NERSA), would increase the average monthly household electricity bill from R2,948.98 to R4,015.04. Electricity costs consume approximately 30% of a minimum-wage worker’s income.
The National Minimum Wage Commission’s proposed increase is woefully inadequate even without factoring in rent, transport, or other essential expenses.
This is why SAFTU continues to demand a living wage. In 2018, we called for a living wage of R12,500. However, given the sustained erosion of the rand’s purchasing power, updated estimates indicate that a living wage should now be at least R15,000 monthly.
SAFTU remains committed to the fight for fair wages and economic justice. We will continue to challenge policies that entrench poverty wages and advocate for a living wage that guarantees workers a dignified standard of living.
A Statement was issued on behalf of SAFTU by General Secretary Zwelinzima Vavi
For more details, contact the National Spokesperson at:
Newton Masuku
066 168 2157
Newtonm@saftu.org.za
