Minimum wage may come in 2024
N$18 per hour
The minimum wage aims to benefit low-income earners, especially those who do not belong to a union.
The government's long-standing plan to introduce a nationwide minimum wage must now be implemented by March 2024, labour minister Utoni Nujoma announced."The government is aiming for a minimum wage of N$18 per hour," Nujoma announced on Friday at the Namibian Union for Food and Related Workers' (Nafau) congress. The trade union's 11th congress took place on the farm Rietfontein near Grootfontein.
"I am pleased to inform you that last month I sent the Wage Commission's report on the introduction of the national minimum wage, supported by a feasibility study and recommendations from the International Labor Organisation (ILO), to the Labour Advisory Council," said Nujoma.
"The proposal is a national minimum wage of N$18 per hour. We plan to complete the necessary consultation and cabinet processes to introduce a national minimum wage by the first quarter of next year."
The minister said that a minimum wage is not a substitute for collective bargaining with trade unions. The minimum wage aims to benefit those who earn a low income, especially those who do not belong to a union. It is expected that the wages and benefits for which unions can negotiate on behalf of their members will exceed the minimum wage, Nujoma said.
Namibia already has minimum wages in the agricultural and construction industries, for which the private sector has negotiated with the unions. The government itself previously set a minimum wage for domestic workers.
Nujoma also announced that Namibia is participating in the United Nations (UN) Global Accelerator programme for employment and social protection. Under this programme, Namibia is currently developing an "ambitious roadmap" to introduce programmes that will have a significant and measurable impact on reducing youth unemployment and expanding social protection.
He said the planned introduction of a state pension scheme is progressing well and is being supported by the UN programme. An unemployment insurance scheme will also be introduced soon. For these plans, a number of laws will have to be amended next year, including the Labour Act and the Social Protection Act, Nujoma said.