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Newsflash: Government might be introducing a national minimum wage

by , 11 August 2014
Government wants to introduce a national minimum wage to reduce income inequality and curb the exploitation of workers in the workplace.

There's no need to panic just yet. For now, it's simply looking into this issue and there will be a lengthy consultation process - so we're still a long way off from a national minimum wage.

But this is the perfect time for you to find out more about the proposal and how it'll affect your business if it comes into force.

What you need to know about government's proposal to introduce a national minimum wage

SAnews.gov.za reports that Labour Minister, Mildred Oliphant, says her department will launch a major investigation into the possibility of introducing of a national minimum wage to bring down levels of inequality in the country.

Oliphant said, given the disparities that existed in the country, 'we have to look at a possibility to ensure that everybody is paid according to what we think is going to be a living wage.'

The Minister says the investigation will look at various possible models, including the model of a countrywide minimum wage that cuts across all sectors of the economy, as well as the model of different pay structures for different sectors based on the nature of their work.

She added, the introduction of a national minimum wage will address the problem of people who do the same job, but don't get paid equally.

So what does that mean for your company?

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How will a national minimum wage affect you?

At the moment, when it comes to minimum wages, government uses the principle of sectoral minimum wage. This means the minimum wage differs depending on the sector the employee is in. If, for example, government introduces a national minimum wage, the minimum wage will be the same across the country for all sectors. So you may have to pay more when it comes to entry level employees.

We'll watch this topic closely and keep you updated so you can comply.

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