Tag: National Minimum Wage (NMW)

Finance minister Tito Mboweni’s new economic strategy paper is a refreshing, much needed breath of fresh air for an economy struggling for oxygen. The paper is replete with common sense proposals all aimed at achieving the economic growth South Africa desperately needs. We have been stumbling along a low-growth path of high taxes, kilometres of red-tape, wealth redistribution, and anti-individualism for far too long. If Mboweni’s paper can be taken as a true step in a new direction, a direction of more individual freedom, South Africa will see green shoots of recovery almost immediately.

SA’s top companies are starting to embrace the concept of fair and responsible remuneration, and some have even adopted and disclosed a living wage that goes beyond the national minimum wage.

When young Americans grow up, rarely do you hear them being excited about going to study in Europe when they leave school. Why would they be? They have world-class universities and immense opportunities at home. It is not uncommon, however, to speak to young South Africans who are keen to leave this country either for extended periods or indefinitely.

Stats SA’s April Statistics of Liquidations and Insolvencies paint a very grim picture. The number of business liquidations increased by 53.1% between April 2018 and April 2019. The number of insolvencies increased by 30.1% between March 2018 and March 2019.

The National Minimum Wage (NMW) is a crime against the poor of this country as it absolutely forbids them from accepting any compensation below the floor set by government. It is reasonable, therefore, to assume that some people who could be working are not employed because of the minimum wage.

Stats SA recently announced South Africa’s unemployment rate has increased to 27.6%. The expanded rate increased to 38%, which translates to 9,994,000 unemployed people.

It is an unmitigated moral tragedy that in the year of celebrating what would have been Mandela’s 101st birthday, the incumbent government has betrayed him on an issue about which that he felt strongly. This is the resolution by parliament to make it constitutionally permissible to expropriate land without compensation (EWC). Despite the rhetoric to the contrary, the resolution does not exempt anyone, not any racial group or entity.

Much is written about inequality, decrying high salaries paid by companies to their executives as being one of its main causes, while no consideration is given, or attention paid to the plight of the unemployed. Those who earn zero! Why is government grinding them into the ground with job deprivation laws?

The National Minimum Wage (NMW) Bill has been passed by the National Assembly and sent for concurrence to the National Council of Provinces. The implementation date of the NMW Bill will be announced after the National Council of Provinces (NCOP's) select committee considers the NMW Bill. The NMW legislation is intended to provide for a national minimum wage; to establish a National Minimum Wage Commission; to review and annually adjust the national minimum wage and provide for exemption from paying the national minimum wage.

What are the practicalities in implementation when trying to apply and decode the draft Bill? I have spent considerable time recently evaluating the practicalities of implementing the Bill on the NMW at numerous clients’ requests. I find it lacking clarity as there are no practical methods for calculating wages and it doesn’t adhere to ‘plain language principle’.