South African President, Cyril Ramaphosa has signed into law the national minimum wage bill. The development came at a time Nigerian workers are yet to get a total commitment to N30, 000 from federal and state governments.
Reuters reports that Ramaphosa’s office said on Monday that the signing was part of efforts by the government to tackle wage inequality in Africa’s most industrialized economy.
The National Minimum Wage Act sets South Africa’s minimum wage at 20 rands ($1.45) per hour, equal to 3,500 rands per month (N126, 000). The law will come into force on a date to be determined by Ramaphosa, the presidency said. Supporters of the minimum wage say it will reduce inequality and stimulate economic growth as workers spend more.
Thousands of union members protested against the proposed minimum wage in April. This creates serious tension within the polity as a sizeable number of the masses and public employees see the development as a stitch in time.
In Nigeria, the story is different as the federal government as well as state governments remain indecisive regarding the N30,000 minimum wage. Given the economic situation of the country, the increase in minimum wage will mean a corresponding increase in the general welfare of the workers in Nigeria.
However, would the increase in minimum wage come without consequences?