WINDHOEK, June 2 (Xinhua) -- Namibia's Cabinet has endorsed the Minister of Labor, Industrial Relations and Employment Creation's (MLIREC) decision to implement a national minimum wage (NMW) starting January 2025.
The NMW will be set at 18 Namibia dollars (about 0.96 U.S. dollars) per hour, with a scheduled review after two years, according to a statement released by MLIREC Executive Director Lydia Indombo on Sunday.
In February 2021, MLIREC Minister Utoni Nujoma appointed a Wages Commission to investigate various industries nationwide, and report, and recommend a proposed NMW. This wage will apply to all employees, except for certain categories exempted by the minister in a Wage Order, and include related supplementary minimum conditions of employment.
"The introduction of the NMW does not replace bargaining power; it simply aims to set a floor wage, especially for the lowest-paid employees. Employers are prohibited from reducing current wages to meet the NMW. The NMW is a minimum, not a ceiling," Indombo emphasized.
Currently, minimum wages exist in security, agriculture, construction, and domestic sectors, leaving others without regulated minimums and vulnerable to low "offer and take" wages.
For domestic workers, the NMW will be phased in over three years: 12.02 Namibia dollars per hour in the first year, 15.01 in the second year, and 18 in the third year, compared to the current 9.03 per hour.
In the agricultural sector, the minimum wage will increase from 6 Namibia dollars per hour plus in-kind payments to 10 in the first year, 14 in the second year, and 18 in the third year, exclusive of in-kind payments.
"A Government Gazette notice in July 2024 will provide full details of the NMW. The implementation aims to improve wages for the lowest-paid workers, reduce income inequality, alleviate poverty, and improve individual and household income, achieving a decent standard of living for all," Indombo concluded. ■
