The Institute of Race Relations (IRR) has called on the National Minimum Wage Commission to reconsider the current minimum wage rate of R27.58 per hour, arguing that it is contributing to significant job losses in South Africa.
According to the IRR, the rise in the national minimum wage has led to the loss of 230,000 jobs in 2024 alone, with the institute deeming the increase too high for the struggling economy.
Gabriel Crouse, IRR's Legal Executive Director, highlighted that while some countries maintain high minimum wages despite job losses, they do so with low unemployment rates, often prioritizing wage increases for those already employed. However, in South Africa, with unemployment officially exceeding 30%, Crouse argues that the focus should be on job creation and supporting those who are most vulnerable in the job market.
“We need to prioritize the poor work seekers who are being excluded from the job market, as well as those just starting to gain work experience," Crouse said. "This means relaxing the minimum wage requirements to give them a chance at employment.”
The IRR's call to action underscores the urgent need to balance fair wages with job creation efforts to address the country’s unemployment crisis.