5 February 2024
Greater cost pressure awaits farmers as the minimum wage rises by 8,5%, despite organised agriculture’s plea for a moderate increase.
The adjusted minimum wage will be R27,58 per hour from March 1. This wage applies to domestic workers and people working on farms and was set by the Minimum Wage Commission in 2021 at R20,76 per hour. It increased to R23,19 in 2022 and R25,42 in 2023.
Thulas Nxesi, Minister of Employment and Labour, announced the increase in the Government Gazette on Thursday.
Jannie Strydom, CEO of Agri Western Cape, says it is regrettable that the commission did not consider organised agriculture’s recommendation to increase the minimum wage sustainably.
“Agri Western Cape pleaded with the commission to consider job creation, the preservation of current employment opportunities and the financial implications on businesses as the core priority during the review of the minimum wage,” he says.
“We therefore commented that the increase should be considered in relation to the inflation rate.”
Strydom says although Agri Western Cape supports a sustainable living wage, an increase above inflation cannot be justified. “Producers are price takers whose cash flow is already under enormous pressure.
“While many permanent agricultural workers already earn more than the minimum wage, agriculture cannot afford annual increases above inflation in a single production input. This will significantly contribute to the cost squeeze.”
