16 Jul 2026

Government remains committed to improving the welfare, dignity and purchasing power of workers, particularly low-income earners who continue to bear the greatest burden of the rising cost of living.

Responding to a question in Parliament, on behalf of the Minister of Finance on Tuesday, Minister of Environment and Tourism Mr Wynter Mmolotsi stated that the commitment was already reflected in the public service as the lowest paid public officer currently received P4,000, comprising of a basic salary of P2,895.00 and a housing and upkeep allowance of P1,105.40.

Mr Mmolotsi said in addition, through the Collective Labour Agreement, housing and upkeep allowances for employees in salary scales A3 to D1 were enhanced during the 2025/26 financial year.

To sustain the improvements, he said the government had made a budget provision of P542 million in the 2026/27 financial year. 

“The issue before us is therefore not one of policy intent but of economic capacity and sustainability. While the government remains committed to extending this objective across the economy, prevailing economic conditions do not yet support the immediate implementation of a P4,000 minimum wage in the private sector,” he added.

Mr Mmolotsi also highlighted that as outlined in the 2026 budget speech, the government projected an overall fiscal deficit of P26.35 billion.

Furthermore, he said the economy contracted by 0.7 per cent in 2025 following a 2.8 per cent contraction in 2024 while the government investment account had declined substantially from a historical peak of P37.2 billion in 2024 to P6.1 billion in April 2026. 

Such developments, he said, underscored the need to safeguard macroeconomic stability while supporting economic recovery.

He noted that an immediate across-the-board increase in the statutory minimum wage would significantly raise labour costs, particularly for small and medium sized enterprises that continued to operate under challenging economic conditions.

“This could adversely affect business viability, constrain employment creation and in some instances result in job losses and such an outcome would not advance the objective of improving workers’ welfare,” he said.

Furthermore, Mr Mmolotsi pointed out that the government therefore considered it prudent to pursue a balanced approach that protected workers while preserving the productive capacity of the economy. 

Accordingly, he said their immediate priority was to strengthen economic growth, restore fiscal resilience and create the conditions necessary for sustainable wage growth.

He said through the Botswana Economic Transformation Programme (BETP), the government was implementing reforms aimed at enhancing productivity, stimulating private sector investment, diversifying the economy and creating sustainable employment opportunities.

The reforms, he said, would strengthen the economy’s capacity to support higher wages on a durable basis, emphasising that the government commitment to a P4,000 minimum wage remained unchanged.

However, the minister also stated that its implementation must be sequenced and aligned with economic recovery, productivity improvements and fiscal sustainability.

“This approach will ensure that the policy achieves its intended objective of improving living standards without compromising employment, enterprise development and long-term economic stability,” he noted.

Mr Mmolotsi said government had already demonstrated its commitment of improving workers welfare through remuneration of the lowest paid public servants.

As the economic conditions continued to improve, they would advance the implementation of the initiative across the broader economy in a manner that was sustainable, inclusive and supportive of long-term economic transformation.

Bobirwa MP, Mr Taolo Lucas had asked the minister to state if the current state of the economy could support a P4,000 minimum wage across the board as it was the desire and wish of the current government.ENDS