Executive committee member of the South African Reward Association (SARA), Mark Bussin, says that employers in South Africa should pay their workers a living wage and not just the national minimum prescribed by law – suggesting a pay between R12,000 to R15,000 per month.
Bussin defines a living wage as remuneration sufficient for an individual and their family to have a frugal yet dignified lifestyle.
Currently, the minimum wage in South Africa is R23.19 for each ordinary hour worked, representing an increase of 6.9% from the minimum wage set in 2021. Considering an average 40-hour work week translates to an income close to“Low-income workers can’t survive on these amounts, and they are often forced to turn to unlicensed money lenders for additional cash to make up the shortfall,” said Bussin.
However, he did propose that a good starting point is to look at the big employers in South Africa who can afford it. He cited a 2013 science journal article, which observed that a lack of money led study subjects to make poorer decisions. The researchers hypothesised that poverty reduced focus and effort, resulting in poor performance.
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