219. Mr D B Feldman (COPE-Gauteng) to ask the Minister of Labour:
(1) Whether her department has compared the minimum wages that have been
set in South Africa for various industries to be far higher than those
in parts of Asia; if not, why not; if so,
(2) whether her department has found that the minimum wages in SA are
double those in many other African states which is affecting large
scale manufacturing, industrial development, production and employment
in the lower sectors; if not, what is the position in this regard; if
so, what are the relevant details? CW308E
Minister of Labour reply:
1) Minimum wages around the world differ according to the average living
standards of that country. Â As South Africa is classified as an Upper-
Middle Income country, it would be inappropriate for us to compare our
minimum wages to those in low-income countries. South Africa is
committed to promoting decent work and sees minimum wages as a key
instrument for reducing poverty and inequality while maintaining
competitiveness. Â
ILO Convention No. 131 calls on countries to take a balanced approach
when determining levels of minimum wages. They should take into
account both the needs of workers and their families and economic
factors such as competitiveness and unemployment.Â
2) If one benchmarks minimum wages relative to the living standards of a
country, it is not clear that SA minimum wages are higher than other
African countries. Â The ILO Global Wage Report compares minimum wages
in various countries to GDP per capita. Â Whereas SA's minimum wage is
only 29.98% of GDP per capita, the minimum wage relative to GDP per
capita in other African countries is much higher - e.g. 78% in
Nigeria, 189% in Lesotho and 113% in Morocco.
END