THE government’s proposal to increase the national minimum wage, especially the large increases for domestic and farm workers, will lead to a jobs bloodbath in South Africa.
This is the view of Efficient Group director and chief economist Dawie Roodt, who was speaking to Business Day TV about the proposed changes.
The National Minimum Wage Commission, which reports to the Labour Minister, has recently published its annual review of the national minimum.
The commission proposed a national minimum wage increase of 1.5% above inflation as measured by the consumer price index (CPI).
It also proposed that the minimum wage for farmworkers be aligned with the national minimum wage in 2021, with domestic workers following in 2022.
This equates to a 16% minimum wage increase for farmworkers and a 20% increase for domestic workers.
The national minimum wage, which currently stands at R20.76 an hour would increase by around 93c to
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