NEASA’s SUBMISSION TO THE NATIONAL MINIMUM WAGE COMMISSION
SA – On 10 September 2021, the National Minimum Wage Commission (‘the Commission’) published an invitation for written representations by the public, regarding the review of the National Minimum Wage (NMW) for 2022, and possible adjustments thereto.
These representations are considered by the Commission, prior to the drafting of its annual recommendation report to the Minister of Employment and Labour.
NEASA has, after publication of this invitation, conducted a survey among employers, in order to determine what the effect of any possible adjustments to the NMW will be on their businesses, and the extent of their ability and capacity to absorb or withstand an increase. The results of this survey were processed and included in NEASA’s submission to the Commission on 1 October 2021.
In NEASA’s submission, it clearly indicated to the Commission that, in view of the current economic climate in South Africa, the effects of the Covid-19 lockdown, as well as the recent losses due to violent lootings of mid-2021, an increase to the NMW will be catastrophic to South African businesses and the economy in general.
As aptly stated in their submission, NEASA said:
“The effect of any adjustments to the NMW should not, and cannot be considered lightly.
In a country such as South Africa, that is already struggling with unprecedented rates of unemployment, extreme poverty, over-burdened employers and business owners, and a veneer-thin trust in Government and its ability to care for its most vulnerable citizens, an unaffordable NMW will completely maim the already crippled economy, leaving employers, business owners, their employees and their dependants destitute.”
NEASA strongly believes that South Africa requires a dispensation which fosters a conducive environment for economic and business growth, as well as one which welcomes the implementation of laws that encourage employment.
NEASA press release extracts, 11 October
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