Minimum wage not in tune with labour market, says Neasa
CEO says setting minimum wage increases unemployment, lowers working hours and prompts noncompliance
10 February 2025 - 05:00
Gerhard Papenfus, CEO of the National Employers’ Association of SA (Neasa), which represents 1,800 businesses employing 65,000 workers in the engineering sector, says the government’s national minimum wage policy is “not responsible” in a developing economy such as SA.
Employment & labour minister Nomakhosazana Meth has increased the minimum wage to R28.79 per hour, effective from March 1, an increase of 4.4% from the 2024 rate of R27.58 per hour. Consumer price inflation is forecast to average 4.5% in 2025. ..
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.