In a significant development for South Africa's workforce, the Congress of South African Trade Unions (Cosatu) has put forward a proposal that could reshape the financial landscape for millions of low-income workers. As the cost of living continues to rise, this proposal aims to provide much-needed relief to those at the bottom of the economic ladder.
The Proposal at a Glance
Cosatu's proposal for the 2025 national minimum wage increase is both simple and ambitious:
- Current minimum wage: R27.58 per hour
- Proposed new rate: R30.03 per hour
- Increase percentage: 8.9%
- Calculation method: Inflation rate plus 3%
The Rationale Behind the Move
Cosatu argues that this increase is more than just a number—it's a step towards reducing inequality and poverty in South Africa. The union emphasizes that rising living costs disproportionately impact low-income workers, making this increase not just beneficial, but necessary.
A More Radical Perspective
While Cosatu's proposal is significant, some argue it doesn't go far enough. The General Industries Workers Union of South Africa has called for an even more substantial increase:
- Their proposal: R15,000 per month minimum wage
This more aggressive stance underscores the severity of the economic challenges faced by many South African workers.
The Bigger Picture
As the September 30 deadline approaches, all eyes will be on the public response and the government's ultimate decision. Whatever the outcome, one thing is clear: the conversation about fair wages and economic justice in South Africa is far from over. The prejudicial impact of an above-inflationary increase is also a major concern.
Our estimation, as GBS, is that it is likely that the NMW will be around R45 per hour by 2030.
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