National minimum wage from 1 January

President Cyril Ramaphosa has confirmed that the national minimum wage will come into effect from 1 January. BusinessLIVE reports Ramaphosa made the announcement at a proclamation ceremony held with workers on Friday in Kliptown, Johannesburg. Ramaphosa told attendees at the ceremony that the wage regime was a result of a lengthy and difficult process of formulating the legislation that involved ‘disagreements’ and ‘strike threats’. He also repeated sentiments that the R20 an hour rate was not the ideal living wage anticipated as ‘there was a need to create a balance’ taking into consideration the employment levels in the country. He emphasised that the regime was not a ‘living wage’ as expected by some quarters. ‘There are workers still earning R7 and hour and less and this legislation will make a big difference in their lives,’ he said. Reaction to the announcement was swift. According to a Fin24 report, Business Unity SA CEO Tanya Cohen said ratings agencies wanted to see a stable labour market in SA, and the minimum wage – together with new provisions in the Labour Relations Act – was credit positive.