NEF wants national minimum wage reversed

The Namibian Employers Federation (NEF) has cried foul over the newly-introduced national minimum wage of N$18 per hour, effective January 2025, saying the consultations were incomplete and that concerns were not adequately considered before the decision was made.In a statement on Wednesday, NEF called for a reversal of the wage order. "There is a need for further deliberations, and we want to see employers&#039; submission through the federation taken into consideration. Following effective tripartite consultations and negotiations, we would like to see a bill drafted and tabled in Parliament after being reviewed by Cabinet and the Cabinet Committee for Legislation," president Elias Shikongo said.He emphasised that the decision undermines the principle of collaboration between government, employers and workers in shaping labour policies.The NEF added that it previously supported the introduction of a national minimum wage in principle, provided it was backed by extensive consultations and negotiations. It proposed an hourly minimum wage for employees not covered by sectoral minimum wages and conditions, with exemptions for certain cases. "The NEF argues that a blanket national minimum wage could lead to retrenchments due to unaffordability and fail to account for productivity differences across sectors." The federation warned that incomplete consultations could lead to a lack of buy-in, further retrenchments, increased informality in the labour market and displacement of workers by technology.It also questioned whether the labour ministry has the resources to ensure effective implementation, which it observed as a challenge faced by other jurisdictions with hastily-implemented national minimum wage measures.

NEF wants national minimum wage reversed

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Namibian Sun 2025-04-04

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NEF wants national minimum wage reversed

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Namibian Sun 2025-04-04

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