Minimum Wage ignored - January/February 2011

All about Minimum Wages in South Africa, Minimum wages Ignored, Domestic Workers and Minimum wages, Salaries and Unemployment and Minimum Wages and more in South Africa on Mywage South Africa.

Research commissioned by the Department of Labour has found that South Africa’s numerous prescribed minimum wages are ignored 45% of the time.

Researchers Professor Haroon Bhorat, Professor Ravi Kanbur and Natasha Mayet found that security guards, farm workers, domestic helpers and certain retail workers, in particular, lose out because the regulations are not enforced.

Paid less then the law

A total of 67% of the country’s security guards are paid less than the minimum. In 55% of cases farm workers are underpaid and these workers receive on average 31% less than they are entitled to according to law.

About 47% of the workers in the taxi industry are also underpaid. They receive on average 38% less. In contrast, minimum wages in civil engineering and in the sector for retail managers are generally complied with.

Unemployment linked to low wages

Minimum wages are especially disregarded in regions with higher unemployment rates than the country’s average.

The presence of the 800 or so Department of Labour inspectors in various areas only has a slight effect. 

Workers belonging to unions or those working for government institutions or larger companies more often receive the prescribed wage.

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