11 Aug 2025

The Ministry of Labour and Home Affairs is currently not in a position to commit to a clear plan on the adjustment of the minimum wage.

This is despite having engaged the International Labour Organisation (ILO) to undertake a comprehensive review of the minimum wage system in the country that would benefit the employer and the employees.

Answering a question in Parliament recently, Minister of Labour and Home Affairs, Major General Pius Mokgware said the study had been completed and a preliminary report shared with the ministry.

He said the ministry was consulting social partners and critical stakeholders to review the report and adopt a well-informed system that would be in the interest of the employer and employees.

In addition, he said the ministry was in the process of constituting the Minimum Wage Advisory Board, which once in place, the work toward a radical transformation of the minimum wage wages order would resume.

He said the ministry was in consultation with businesses to consider a progressive adjustment of the minimum wage rate, from P1 500 to P4 000, though appreciating the fact that it would be difficult to move immediately to the highest threshold.

Through consultations with the businesses and employees, the minister said they were encouraged that the adjustment in the wage bill must be done in an incremental manner, to support them from resorting to wage cuts and retrenchments.

He said adjustments must take into consideration the capacity of the businesses to pay such wages.

Minister Mokgware further said government was committed to regular reviews of the minimum wage in response to changing economic conditions, adding that adjustment should be maintained on a regular basis.

He explained that the role of the minimum wages was to set a statutory wage floor to protect workers against exploitation and discrimination in the work place.

The minister said therefore to address the regional disparities on the cost of living, minimum wage system should be accompanied by widespread collective bargaining at industry and regional level.

He said collective bargaining determined the structure of wages for different occupations, locations and types of business as well as sector specific conditions of employment.

The minister was responding to a question from Kgatleng East MP, Mr Mabuse Pule, who had wanted to know when the minimum wage would increase to P4 000.

Mr Pule wanted the minister to provide a plan with assurances that the increase would be sustainable, explain how the planned increase would impact small and medium businesses, describe any support of incentive the government would offer to help businesses sustain wage increases without resorting to wage cuts.

He also wanted the minister to confirm if the government was committed to regular reviews of the minimum wage in response to changing economic conditions as well as indicate how the government planned to address regional disparities in the cost of living, particularly in rural or less developed areas. ENDS