In a bid to tackle this extreme divide between rich and poor, South Africa’s government has proposed to implement a minimum wage for the first time. The 20-rand-an-hour ($1.40 roughly), equivalent to a monthly wage of 3,500 rand (USD242), will be implemented within the next two years.
It will reach all workers except those in the domestic, agriculture and small business sectors.
South Africa’s domestic workers already earn 76% less than the projected minimum monthly wage, however the measure does not apply to the countries’ poorest workers. Reasons behind this are through fears of it leading to further job losses as opposed to growth. The University of Cape Town predicted job loss rates between 500,000 to 750,000.
