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NEASA: Minimum wage will lead to job losses

The NEASA has slammed Wits University's national minimum wage research initiative.

Picture: Christa Eybers/EWN

JOHANNESBURG - The National Employers Association of South Africa (NEASA) says that a minimum wage of between R4,500 and R5,000 a month will lead to economic growth doesn't make sense and that job losses would be the automatic result of such a wage.

Yesterday, Wits University's national minimum wage research initiative said a minimum wage of around R4,000 could lead to growth domestic product growth of nearly three percent.

The African National Congress has said it plans to introduce a national minimum wage this year.

LISTEN: Should SA have minimum wage?

But NEASA's chief executive Gerhard Papenfus says employers would simply have to fire millions of workers because they could not afford to pay a wage set at that level.

"When you think about domestic workers, farmer workers and people working at taxi ranks - lots of workers earn 60 percent of that - you will automatically have job losses."

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