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Concerns over implementation of minimum wage resurface

There are concerns that this could negatively impact on small companies and workers in rural areas.

Picture: EWN.

CAPE TOWN - Questions have again been asked about the implementation of a minimum wage.

There are concerns that this could negatively impact on small companies and workers in rural areas.

Government will formally adopt a national minimum wage of R20 an hour on worker’s day next year.

Stellenbosch economics lecturer Dieter von Fintel says history shows a minimum wage doesn't always benefit all.

“The employment in big farms grew in 2003 after the introduction of minimum wages in agriculture. but the opposite happened on small farms where employment actually shrunk. the argument here is that often big players have the advantages.”

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