Minimum wage won’t make life easier, expert says

Government’s announcement of the N$18 minimum wage, which is expected to come into effect in January 2025, has been met with criticism.Labour expert Herbert Jauch said the minimum wage is a compromise and although it will aid extremely low-earning workers, it will hardly make their lives easier.In its announcement last weekend, the labour ministry emphasised that the newly-introduced minimum wage should serve as the lowest wage an employer may pay an employee, adding that companies should not decrease the salaries of their staff based on this number."The N$18 per hour is a compromise. If you look at the Namibian Constitution, which requires a living wage, it is far below that provision. However, if we look at the extremely low wages of workers in retail, as well as farm- and domestic workers, it is so low that it is often below N$10 per hour. So, this can help them to earn at least more than N$1 000.”Jauch added that they will have to wait and see whether the minimum wage will be implemented, as numerous provisions of the Labour Act are not implemented as they should be. "However, it can only be a good thing when it is implemented and we can achieve it, because wages are still too low. It will require very strong unions that can ensure that it is implemented and negotiate for more,” he said.“What needs to be in place is a hotline where workers can expose their working conditions and alert the authorities. There is a need for such a mechanism that will enable workers to report incidents without being victimised,” Jauch added.‘Unique’ agri sectorThe management of the Agricultural Employers&#039; Association (AEA) has strongly objected, specifically after asking in 2021 for a waiver of the national minimum wage because agriculture remuneration uniquely includes housing, cash and provisions."The labour ministry&#039;s phasing model with its massive leaps is unfeasible and unaffordable," it said. "The agricultural community nationwide is in the midst of the worst drought in 100 years, which President Nangolo Mbumba has already declared a state of disaster. Such adjustments are ill-considered."Meanwhile, activist Michael Amushelelo echoed Jauch&#039;s sentiments, adding that government should promote a living wage instead of a minimum wage. "It is great to note that the Cabinet has finally woken up and realised that the majority of our people are still being exploited. The proposed N$18 per hour is welcomed, but knowing how the capitalist system works, employers will probably reduce the working hours of workers.”He added that a security guard, who currently earns N$8.75 per hour, works 12 hours a day for 28 days and earns an average of N$2 940 per month. The guard will earn about N$6 048 per month if the new minimum wage is introduced.“That is why I say the working hours should remain the same, including the number of days,” he said.Amushelelo further expressed concern over the fact that the minimum wage is only set to be implemented in January. "The big question is whether this is just another election gimmick.”Starting pointNamibia Media Professionals Union (Nampu) representative Esther Mbathera emphasised the importance of industry-based standards. "It is crucial to recognise that the proposed minimum wage does not specify which category it applies to. For the media industry, this should not be seen as the definitive wage, but rather as a starting point," she said.Mbathera highlighted the unique challenges journalists face. She noted that their work carries significant risks, especially for those involved in investigative and political reporting, which can pose serious security threats. "Journalists should be compensated accordingly. They don&#039;t work for minimum wage; sometimes they risk their lives," she said.She further assured that once Nampu is officially registered, the union will advocate for a minimum wage adapted to the media industry. The general secretary of the Metal and Allied Namibian Workers&#039; Union (Manwu) Justina Jonas said they appreciate the introduction of a minimum wage, but it is not enough."It&#039;s not enough, but it serves as a foundation. If you get N$18 an hour, you get additional compensation for overtime. Workers still have the right to collective bargaining to improve their salaries. Before, there was nothing and now there is something, and we as labour movements should appreciate it."

Minimum wage won’t make life easier, expert says

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Namibian Sun 2025-02-21

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Minimum wage won’t make life easier, expert says

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Namibian Sun 2025-02-21

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