Minimum wage workers forced to make tough decisions amid electricity, fuel increases

JOHANNESBURG - Domestic workers will be the hardest hit by the latest electricity and fuel price increases.

This, according to Izwi Domestic Workers Alliance co-founder, Amy Tekkie.

A large percentage of their income is consumed by basics like electricity and transport costs.

READ: Eskom to implement 8.76% tariff increase

According to Tekkie, domestic workers do not have disposable income to allocate to additional costs.

Many workers will be forced to sacrifice their food budgets to cover transport or choose between school fees and electricity.

"Many do not have any benefits as part of their employment package," says Tekkie.

Employers of the domestic workers will definitely be feeling the financial crunch. This might make it harder to increase wages.

READ: Price hike for direct Eskom customers

However, whatever small amount they can provide will go a long way, says Tekkie.

"Those who are unable to do so could try giving public holidays off, paying overtime or meeting with other labour law requirements," she says.

The country's minimum wage went up to R30.23 in March. The 5 percent increase means that for a 40-hour work week, those working minimum wage jobs earn approximately R1,209.20 weekly.

This amounts to approximately R5,200 a month. The National Energy Regulator of South Africa (NERSA) approved a 8.76 percent electricity increase for all Eskom customer.

READ: Temporary relief for motorists as govt cuts fuel levy by R3

Municipal customers will fell the increase in July.

Mervyn Abrahams from Pietermaritzburg Economic Justice and Dignity (PMBEJD) said the increases would eat into over 40 percent of the income of those on minimum wage.

Abrahams said the electricity increase would have an immediate effect on food prices, expected around May–June.

On Tuesday the Finance and Mineral Resources Ministers announced a temporary R3 fuel levy relief.

The cushioning is only for one month, but Mineral Resources and Petroleum Deputy Director-General Tseliso Maqubela said this allows government to see what other measures can be implemented.

READ: READ: 43% of income could go to electricity, says PMBEJD

The relief comes after motorists were expecting to be hit hard at the pumps with an expected R6 fuel price increase. The ongoing war in the Middle East has seen global oil prices rise, with various countries looking for ways to ease the pressure on citizens.

On Wednesday the electricity increases kick in.

Maqubela says government are currently working to find ways to curb food inflation.

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