JOHANNESBURG - South Africa's national minimum wage will increase to R30,23 an hour.
This is an increase of R1,44 from R28.23 is effective in March.
Employment and Labour Minister Nomakhosazana Meth made this announcement on Wednesday.
She said the upward adjustment would benefit all workers, including vulnerable farm workers and domestic workers.
READ | Minimum wage hike exposes challenges for domestic workers
Global Business Solutions, Joint CEO John Botha, who adds to the minister's comment, regards this as a significant increase.
According to Botha, this means at least 5.5 million individuals would have a 5% increase in their wage payment.
"South Africa is one of the highest and most inequitable geographies in the world. So, the national minimum wage is one of the mechanisms generally that government can use to try and narrow that."
The announcement, however, was not welcomed by various workers' unions.
Among those was the General Industries Workers Union of South Africa (GIWUSA) who rejected the minimum wage increase.
The union regarded it as a betrayal of the working class in the face of soaring living costs.
According to the union, the current minimum wage still leaves a R2,000 monthly shortfall against basic expenses.
This means customers still cannot afford.
"After paying for transport and electricity, a minimum wage worker has virtually nothing left for a nutritious food basket for their family. This proposed increase does not close this gap; it merely adjusts the depth of the deficit," the union said.
Instead, the union is requesting a living wage that meets workers' basic needs.
Much like GIWUSA, Botha hopes this boost could alleviate the cost of living, food, and transport for employees to some extent.