South Africa’s minimum wage earners struggle amid high costs of living
Minimum wage earners including security guards, expanded public works programme (EPWP) workers, and domestic workers are fed up with scraping by as the cost of living sky rockets.
They are urging the Minister of Employment and Labour to step up to the plate and raise the minimum wage from the current rate of R27.58 per hour.
The workers voiced their struggle with low wages, lamenting that they are left with just pennies to scrape by.
In March, then Labour Minister Thulasi Nxesi raised the minimum wage from R25.42 to R27.58. The 8.5% increase barely made a dent compared to the soaring cost of living, the minimum wage earners say.
According to data from Statista, this means the SA minimum wage per month is $233 (R4,137). SA is ranked 50th, with Luxemburg with the highest minimum wage at over $2,459 (R43,668), while other African countries like Nigeria are as low as $68 (R1,207).
Minimum wage earners, including Brightness Mukwebo, are battling uphill with their meagre pay.
The 24-year-old security guard from Cosmo City, in Joburg North, earns about R4,700 a month. She said it barely covers the basics as she struggles to make ends meet as the sole breadwinner.
Mukwebo who stays in a government RDP house with her unemployed mother and three siblings, said she was the sole breadwinner.
“I thought having a job would bring financial stability, but, it has brought nothing but a constant struggle to make ends meet.”
The final-year University of South Africa teaching student, who is funded by NSFAS, said that from her R4,700 monthly salary, she allocates R2,500 for food, cosmetics, gas, and data, R1,000 to support her unemployed mother, and R1,000 to savings.
However, this leaves her with just R200, and she had to slash her spending on entertainment and leisure activities due as she shoulders many responsibilities.
“As a young adult, I want to socialise and have fun, but it's just not feasible on my current income.
“I wish the minimum wage would be increased to ease the financial burden on low-income individuals like me.”
Mukwebo urged policymakers to address the ongoing struggles of minimum wage earners by implementing a fair wage to transform their lives and lighten their burden.
Another struggling minimum wage earner, Shirley Molefe, 29, from Mokamole village in Mokopane, Limpopo, an EPWP worker, lamented that her salary barely meets her essential needs.
The mother of two, a girl and a boy, pockets R3,800 a month, and she also supports her brother and three siblings.
“The money is simply not enough. I spend R1,500 on food, R600 on clothes, R350 on water, R300 on toiletries, R150 on the burial society, and R400 on social club.”
Molefe said after covering all her expenses, she is left with only R500, which is not enough to cover unexpected additional costs.
“Just because I bought grocery doesn’t mean that it will last until month end since we’re too many. When it run out before the month is over, I have to borrow money, which affects my budget for the next month.”
She emphasised that an increase on the minimum wage increase could significantly help her keep up with the rising cost of living.
Meanwhile, Dr Frederich Kirsten from the School of Economics in the University of Johannesburg told IOL News that R27.58 per hour minimum wage falls short due to soaring living costs.
“The current minimum wage is not a living wage and is not sufficient for a decent standard of living, especially considering the rising cost of living.”
He said that while implementing higher minimum wages is linked to economic, political, and labour market factors, solutions are needed to address slow wage increase.
“One of the most effective solutions to fast-tracking a higher minimum wage would be to generate a prolonged period of economic growth, which would lessen the economic strain on the business environment.
“Along with political stability, this would create a favourable setting for implementing higher minimum wages,” he said.
Kirsten suggested that the best way to close the wage gap is by focusing on sustainable economic growth to lift South Africa out of its low-growth trajectory and reduce unemployment.
“Once the economy is growing at a pace of +2%, public finances could also improve, allowing for further policy interventions to close the wage gap.”
With the National Minimum Wage Commission (NWC) inviting stakeholders to submit recommendations for minimum wage adjustments before September 30, Kirsten highlights the key priorities that need attention.
“A strong alignment of minimum wage with the cost of living, the issue of high unemployment and the impact of wage adjustments on small and medium-sized enterprises (SMEs) needs to be prioritised,” he told IOL News.
Professor Jannie Rossouw from Wits Business School argued that improving education is key to addressing the slow growth of minimum wage in the country.
“The improved education and training will increase the output and productivity of employees.”
Rossouw stressed that employee affordability must be a constant consideration in policy adjustments.
“We have already seen widespread replacement of employees by means of mechanisation. Higher cost of employment implies that mechanisation becomes more attractive,” he said.
For instance, for someone who’s working for 8 hours a day, which is equals to 160 hours per month, should pockets R4,412 when calculated with the current minimum wage of R27.58 per hour.
When calculated with last year’s minimum wage of R25.42, with the same hours, the monthly salary would be R4,067, which makes an increase of about R350 to the current wage.
IOL