The South African National Minimum Wage: Potential or Concern?

Abstract

The introduction of a South African national minimum wage has been received with mixed feelings. With the various perceptions in mind, this article considers the role that the South African national minimum wage will possibly assume in the South African context by deliberating on some concerns and the potential it holds based on foreign national evidence and the effect that sectoral determinations have had in South Africa. This article concludes by supporting the introduction of the South African national minimum wage. International evidence and sectoral determinations indicate that the common concerns are often inflated or unwarranted. This is not to say that these concerns should be disregarded, though. The impact and consequences of the South African national minimum wage should be carefully monitored throughout the implementation process in order to optimise its positive impact and minimise any possible negative consequences it may have.