Effects Of Minimum Wage In South Africa - 708 Words

Unemployment is a huge problem in South Africa. This has to do with many factors such as apartheid, poor infrastructure, etc. This all relates back to the minimum wage. Minimum wage, defined by Google, is the lowest wage permitted by law or by a special agreement. This raises many questions such as: Is it fair to pay everyone the same minimum wage even though their jobs are different? Many people believe that the minimum wage should not exist and that people should get paid according to the work which they do. The minimum wage is a good law, I believe. A huge percentage of the labour force was paid an hourly wage equal to or below the minimum wage. Many people believe that workers should be paid according to the skills, time efficiency†¦show more content†¦This is why Government intervention was needed to help bring the lower socio-economic class of South Africa out of poverty and to give them more opportunities to better themselves. The fact is that most of the people in poverty within South Africa did not do this to themselves and were merely placed there as a result of a racially diverse old South Africa. This means that it is up to the Government to try give these people a better life. The minimum wage protects these people from being exploited for extremely cheap labour. Labour unions in South Africa have been formed to protect the rights of the workers and to ensure that the minimum wage law is being adhered to. The minimum wage does face a lot of criticism and judgement. Drastically increasing the minimum wage will cause many problems within the economy. It would place a lot of pressure on low skills and labour jobs. Businesses will face huge cost increases which would lead them to lay off workers or increase the prices of their products and services. The minimum wage is also seen as redundant as it serves no real purpose. It is a political ploy that allows people to believe that they are not being exploited for cheap labour however the minimum wage is still very low so anything just over the minimum wage is still a very poor amount to pay people. The minimum wageShow MoreRelatedThe Impact Of National Minimum Wage On South Africa s Income Inequality Essay1525 Words   |  7 PagesThe impact national minimum wage would have on South Africa’s income inequality should it be implemented. South Africa is still considered one of the countries which still consist of high income inequality. Economists argue that inequality is the most unavoidable part of the economic development and that it continues to increase in developing countries due to economic growth (Keeton, 2014). 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