New research from data mining group Analytico shows how current wages in South Africa’s unskilled labour sector compare to the proposed national minimum wage of R3,500 per month.<\/p>\n
According to Analytico’s data, several industries in South Africa already carry an average monthly wage that is above the R3,500 minimum proposed – however, out of the 10 industries assessed, seven come in below the proposed lower limit.<\/p>\n
Data was obtained from Statistics South Africa and processed using Analytico’s algorithm.<\/p>\n
Analytico said its earnings comparison was conducted on the elementary work group of occupations. These are occupations that require the lowest qualifications to perform a job.<\/p>\n
Thus, it is reasonable to view it as an unskilled set of occupations, the group said.<\/p>\n
“The rationale for selecting this skill level are that these are the skill level\/occupations that will be the most affected by the national minimum wage,” the group said.<\/p>\n
This level of occupation was taken into account in 10 sectors, across four provinces – namely Gauteng, the Western Cape, KwaZulu Natal and the Eastern Cape.<\/p>\n
Notably, only Gauteng offered a median minimum wage above the proposed level of R3,500, and even then, it was only over marginally.<\/p>\n
The table below details the findings:<\/p>\n
| Industry<\/th>\n | Gauteng<\/th>\n | Western Cape<\/th>\n | KwaZulu Natal<\/th>\n | Eastern Cape<\/th>\n | Median earnings<\/strong><\/th>\n| Industry differential<\/th>\n<\/tr>\n | Electricity, gas and water supply<\/td>\n | R6 430<\/span><\/strong><\/td>\n | R5 834<\/span><\/strong><\/td>\n | R3 987<\/span><\/strong><\/td>\n | R1 979<\/td>\n | R5 230<\/span><\/strong><\/td>\n | +33%<\/span><\/td>\n<\/tr>\n | Mining<\/td>\n | R4 331<\/span><\/strong><\/td>\n | R3 370<\/td>\n | R3 515<\/span><\/strong><\/td>\n | R1 815<\/td>\n | R3 850<\/span><\/strong><\/td>\n | +9%<\/span><\/td>\n<\/tr>\n | Transport<\/td>\n | R4 125<\/span><\/strong><\/td>\n | R3 244<\/td>\n | R3 380<\/td>\n | R3 071<\/td>\n | R3 672<\/span><\/strong><\/td>\n | +5%<\/span><\/td>\n<\/tr>\n | Manufacturing<\/td>\n | R3 808<\/span><\/strong><\/td>\n | R3 088<\/td>\n | R2 548<\/td>\n | R2 605<\/td>\n | R3 238<\/strong><\/td>\n | -8%<\/td>\n<\/tr>\n | Social services<\/td>\n | R3 840<\/span><\/strong><\/td>\n | R3 479<\/td>\n | R2 123<\/td>\n | R2 181<\/td>\n | R3 179<\/strong><\/td>\n | -10%<\/td>\n<\/tr>\n | Wholesale and retail<\/td>\n | R3 553<\/span><\/strong><\/td>\n | R2 950<\/td>\n | R2 335<\/td>\n | R1 945<\/td>\n | R2 988<\/strong><\/td>\n | -17%<\/td>\n<\/tr>\n | Financial<\/td>\n | R3 389<\/td>\n | R2 833<\/td>\n | R2 015<\/td>\n | R2 067<\/td>\n | R2 886<\/strong><\/td>\n | -21%<\/td>\n<\/tr>\n | Private household<\/td>\n | R3 265<\/td>\n | R2 506<\/td>\n | R1 848<\/td>\n | R2 022<\/td>\n | R2 432<\/strong><\/td>\n | -44%<\/td>\n<\/tr>\n | Construction<\/td>\n | R3 489<\/td>\n | R2 879<\/td>\n | R1 595<\/td>\n | R1 393<\/td>\n | R2 390<\/strong><\/td>\n | -46%<\/td>\n<\/tr>\n | Agriculture<\/td>\n | R3 362<\/td>\n | R2 686<\/td>\n | R1 740<\/td>\n | R1 679<\/td>\n | R1 989<\/strong><\/td>\n | -76%<\/td>\n<\/tr>\n | Median earnings per province<\/strong><\/td>\n | R3 607<\/span><\/strong><\/td>\n | R3 004<\/strong><\/td>\n | R2 022<\/strong><\/td>\n | R1 860<\/strong><\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n | Provincial differential<\/td>\n | +3%<\/span><\/td>\n | -17%<\/td>\n | -73%<\/td>\n | -88%<\/td>\n | <\/td>\n | <\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n | The national minimum wage is an ongoing debate in South Africa, with the latest proposal of R3,500 per month just the starting point.<\/p>\n According to analysts, there is a long road ahead to the projected full implementation date of mid-2019, by which time (taking inflation into account) the wage could be set just under R4,000.<\/p>\n Various sectors have society have weighed in on the matter, with political parties such as the EFF and unions saying that the R3,500 wage is far too low (seeking a level at R4,500 minimum) – while economists and business leaders have said that the wage is too high, and will lead to job losses.<\/p>\n According to modelling by the University of Cape Town and National Treasury, South Africa could see between 500,000 and 715,000 job losses as a result of the wage limit – a figure that would not sit well with a country that has an unemployment rate of 27.1%.<\/p>\n However, other economists have said that the initial job loss figure won’t be nearly as high as the figures quoted – but rather the future hiring practices of companies are a bigger risk, which will lead to the same outcome: even higher levels of unemployment.<\/p>\n |
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