LISTEN: National minimum wage to take effect in January
President Cyril Ramaphosa has announced that the
new national minimum wage of R20 per hour will become effective on January
1.
He made the announcement in Kliptown Soweto on Friday.
Ramaphosa said the minimum wage is the product of two years of negotiations between business, government, labour and community organisations.
"Let it be clear that this national minimum wage did not arrive on a silver platter. There was a lot of struggle and negotiations and areas of divergence, serious disagreements and moments of setbacks. There were strikes that were embarked upon and labour also threated a massive national strike and there were moments were business felt should walk away from this process because they felt they could not afford it and it would bankrupt a lot of businesses."
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He said despite the many disagreements the parties managed to find common ground during the most difficult of moments.
The minimum wage has come in for sharp criticism from certain sectors of society, with the Economic Freedom Fighters (EFF) and trade union federation Saftu calling for a national minimum wage of R12 500.
Ramaphosa told delegates that while government agrees that R3 500 a month is not enough, there had to be a balance.
"Social partners themselves sought and wanted to strike a balance between the need to measurably improve the income of the lowest paid workers in our country and the need to sustain and increase levels of employed. And of course, everyone would want a national minimum wage which is way above R15 000, but at the same time we need to create a balance."
He said there is a general agreement that R20 per hour is not a living wage but a start.
"The social partners themselves collectively agreed on this level because the available evidence showed that it would not lead to widespread layoffs, it would not lead to the widespread closure of companies but would increase the earnings of as many as 6.4 million workers in South Africa."
Ramaphosa reiterated that companies that will not be able to pay the minimum wage come January could apply for an exemption.