By Carien Kruger
The national minimum wage for farm workers will increase from R27.58/h to R28.79/h from 1 March.
Ms. Nomakhosazana Meth, Minister of Employment and Labor, announced the new minimum wages in the Government Gazette on Tuesday, 4 February.
In its response, AgriSA said it takes note of the 4.4% increase and says it reflects the complex economic landscape of the agricultural sector.
“We recognise that the National Minimum Wage Commission strove to follow a balanced approach in its decision-making process,” said Johann Kotzé, CEO of AgriSA.
According to him, the increase aims to support the livelihood of farm workers while also considering the long-term sustainability and competitiveness of the agriculture sector, which plays a critical role in the South African economy.
“With approximately 935 000 people working in agriculture, it is essential that we support fair wages and the viability of our industry, especially in rural areas where job creation is essential.”
AgriSA said the timing of the wage increase was important, as the sector is currently struggling with numerous challenges, including a contraction of approximately 5% in its gross domestic product (GDP) for 2024. Recent disruptive weather patterns have also led to severe drought conditions in many farming regions, putting significant pressure on farmers and threatening profit margins in the short term.
The organisation refers to the Bureau for Food and Agricultural Policy’s (BFAP) expectation that the overall agricultural GDP could recover and grow by 3.5% this year, assuming rainfall returns to more normal patterns.
“Despite the immediate obstacles we face, AgriSA remains steadfast in its commitment to promoting a sustainable agricultural landscape in South Africa,” he said. “We believe that by improving job creation initiatives and advocating for policies supporting workers and employers, we can cultivate a thriving agricultural sector that benefits all stakeholders.”
According to an information document from Agri Northern Cape, the increase in the minimum wage means that the new weekly wage for farm workers amounts to R1,295.55 and monthly to R5 613.62.
