South Africa will introduce a national minimum wagThursday, according to a Reuters report.

The announcement follows protracted negotiations between the government and labour unions.

Nigeria’s current minimum wage is N18,000 ($60) with organised labour asking it be increased to at least N50,000 ($166), despite several state and local governments defaulting on the existing amount.

The Nigerian government has not acceded to labour’s request amidst a biting recession that has crippled Africa’s largest economy.

Workers have meanwhile complained the N18,000 is way below a living wage and cannot meet basic needs of workers.

Supporters of a South African minimum wage say it can stimulate growth as workers can spend more, and reduce inequality.

Critics say it could lead to increased unemployment as employers will be unable to afford higher wage bills.

Credit ratings agencies have said agreeing a minimum wage would help Africa’s most industrialised economy hold onto its investment-grade rating by stabilising the labour market and reducing the number of strikes.

“The balance we have sought to strike is that it must not be too low, so that it doesn’t affect the lowest paid workers, but not too high that it leads to massive job losses,” Mr. Ramaphosa told a news conference.

Mr. Ramaphosa said the national minimum wage, which equates to 20 rand (1.50 dollars) per hour, would come into effect in May 2018.

Businesses that are unable to afford the minimum wage would be permitted to apply for an exemption of up to 12 months, he said.

The Treasury had also thrown its political weight behind the policy initiative.

Chief economist at Nedbank, Dennis Dykes, said the agreement was a sign of an improving relationship between labour, business and government, but warned that its implementation needed to be monitored.

“It is by no means certain this will lead to job creation.

“It needs to be watched carefully for any negative effects,” Mr. Dykes said.

Monthly earnings for employees averaged 18,045 rand (1,200 dollars) per month in May 2016, according to Statistics.

Many workers earn far less than that, with domestic workers and farm labourers among the lowest paid.

Some unions had asked for a minimum wage of as much as 4,500 rand.

South Africa’s mining sector was brought to its knees by a crippling five-month stoppage over pay in 2014,pushing the economy to the brink of a recession.

South Africa’s unemployment rate hit its highest level on record, 27.1 per cent of the workforce, in the third quarter of 2016, and it remains amongst the world’s most unequal societies.


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http://www.premiumtimesng.com/news/headlines/223035-nigerias-minimum-wage-stands-60-south-africa-introduces-260-minimum-wage.html

south Africa is far ahead of Nigeria

are we living in Hell?

Don't blame anyone without blaming yourself first.

When you chose a political PARTY in place of the right CANDIDATE who is from another political party what do you expect?


When you decides for vote geopolitical reasons instead of National interest, what do you expect?

When you chose to follow TRIBAL candidate instead of the BEST man for the job, what do you expect?


When you chose to cast your vote for the sake of RELIGION, what do you expect?

I can go on and on, but let me stop here.

Forgetting the fact that POVERTY, CRIME, HUNGER ETC. Does not respect your so called TRIBE, RELIGION, GEOPOLITICAL ZONES, and yes even your "PARTY".

even at N18,000 minimum wage,most states are owing a back log of salaries.

that is forwardness and not stagnancy

https://www.youtube.com/watch?v=QQ2YhA36xLk

Nigeria's National Minimum Wage Is Due For Review

You don't expect an economy experiencing recession to increase minimum wage, there will excess disposal income with income earners which will worsen the recession...this could be achieved after the recession.