Two African countries- South Africa and Nigeria- are paying their workers differently, not necessarily based on their vibrant or depressed economy.
Straightnews discovers that South Africa’s GDP per capita was expected to reach $7180 by the end of 2020, according to Trading Economics global macro models and analysts expectations.
Despite its wealth, South Africa is ranked as the most unequal country in the world. About 42 percent of total wealth in Africa is held by 140,000 high net-worth individuals, defined as those with assets of at least $1 million.
Nigeria’s GDP per capita was expected to reach $2250 by the end of 2020, according to Trading Economics global macro models and analysts expectations, Straightnews research has shown.
Paradoxically, Nigeria rated as Africa’s largest economy and the continent’s biggest crude oil producer, yet more than half the population lives in poverty, and 60% of the urban population cannot afford the cheapest house.
President Cyril Ramaphosa led government of South Africa has approved R21,69 Rand (577 naira) per hour as new National minimum wage for workers in the country.
It is understood that the newly approved wage if converted to the Nigeria naira will equal N105,400 monthly.
A Nigerian worker who works eight hours a day earns a minimum wage of N30,000 against the previous N18,000 monthly.
President Muhammadu Buhari-led government approved the new Minimum Wage on April 18, 2019 after signing it into law.
The South African Employment and Labour Minister, TW Nxesi, who announced the increment in a statement on Wednesday, February 10, said it will take effect from March 2021.
It is understood that South Africa’s Basic Conditions of Employment Act upheld that workers work nine hours per day and for 21 consecutive days which puts their NMW at (455.49R) or N105,400.
Nxesi while affirming the new development said that the decision of government to adjust workers’ salaries was hinged on certain prevailing circumstances having direct impact on the citizens as well as the economy.
He said, “In considering the annual adjustment, the Commission consider the following factors: inflation, the cost of living, and the need to retain the value of the minimum wage; gross domestic product; wage levels and collective bargaining outcomes; productivity; ability of employers to carry on their businesses successfully; the operation of small, medium or micro-enterprises and new enterprises; likely impact of the recommendation adjustment on employment or the creation of employment.”
Nxesi said that for “a transitional phase, the farm worker sector has been aligned with the NMW rate of R21,69 per hour,” while domestic workers sector will be entitled to R19,09 per hour.
But he added that workers on expanded public works programme will get “R11,93 per hour”.