Latest news with #R27.58
IOL News
06-05-2025
- Business
- IOL News
Royal AM's salary disclosure: FUSA concerned MaMkhize made players 'a laughing stock'
Shauwn Mkhize FILE - Royal AM Shauwn Mkhize hasn't given up the fight to save het football club. "As FUSA, we believe it is not appropriate to expose players' salaries in this manner. This is especially concerning when some of those players are unemployed and actively seeking jobs," FUSA's Taelo Motloung told Kickoff . All these players were paid on February 14 this year and Mkhize asked the court to hear the case on May 20, just before the conclusion of the league season. In an urgent court order in the Joburg High Court to declare the expulsion unlawful, the KwaZulu-Natal businesswoman attached proof of payment of the players' income , with the word 'salary' reflecting as a reference on each and every transaction, which gives the amount of money the players were earning at the club. The non-payment of salaries and financial sustainability of the club were some of the arguments used by the PSL when they eventually expelled the club after the SARS curator failed to find a buyer for the club Mkhize revealed her players' salaries in the latest effort to overturn their expulsion from the Premier Soccer League (PSL) , after South African Revenue Service (SARS) had put the club under curatorship because of an outstanding R40 million tax bill. The Footballers Union of South Africa (FUSA) has slammed Royal AM boss Shauwn 'MaMkhize' Mkhize for revealing the club's players' salaries. "By disclosing their salaries, she risks scaring away other clubs from signing them. Clubs may assume they cannot afford such salaries, which compounds the issue. "As a club owner, such actions are unacceptable, unless there is a minimum wage regulation in our football. If that were the case, what she did would not be a problem. However, the manner in which she did it suggests her intent was to deter other clubs and potential suitors, or to publicly expose the players. "While FUSA advocates for transparency and fair treatment of our members, we understand that players may feel embarrassed by this revelation, though not to the extent of seeking counseling. In overseas leagues, players' salaries are not kept secret, and since they are public figures, people should be aware of what professionalism in football entails," he adds. According to the papers, veteran defender Thabo Matlaba was Royal AM's highest-paid player, taking home R121,000. A player known as Mnguni S was the lowest-paid player with a net pay of R2,000. In terms of the law, as of March 1, 2024, the minimum wage in South Africa is R27.58 per hour, or R4,779.38 per month for a 40-hour work week. However, there is no prescribed minimum wage agreement for professional footballers in the Betway Premiership and the second-tier ABC Motsepe League. Motloung says Mkhize has made her players 'a laughing stock' after revealing their salaries. "This is the kind of information that should be exposed. It would not be inappropriate to disclose players' salaries if we had a minimum wage in this country,' he said. 'For instance, if the Motsepe Foundation Championship had a minimum wage of R20 000 or R30 000, and the PSL had a minimum wage of R50,000, we wouldn't criticise MaMkhize's actions. "But because there is no minimum wage, players are made to look foolish in the eyes of jealous neighbours and relatives, who might say: 'Look, these people are bragging about their sons who only earn R5 000 a month.'" "In this case, I believe it should be the player who reveals their salary, not the chairman. MaMkhize has made her players a laughing stock. What has she accomplished by doing this?" @JohnGoliath82
TimesLIVE
29-04-2025
- Business
- TimesLIVE
TL 6AM: Cleaning the nation, yet struggling to eat: domestic workers buckle under rising costs
More than four in 10 domestic workers in South Africa still earn below the national minimum wage despite modest improvements in earnings over the past year. This is one of the findings of SweepSouth's seventh annual report on pay and working conditions for domestic workers, released in 2024. The report paints a complex picture of the domestic work sector amid soaring living costs and widespread financial insecurity. The report, based on responses from more than 5,600 domestic workers, found that median monthly earnings for those on the SweepSouth platform, known as SweepStars, increased by about 5% in 2024, reaching R5,242. 'SweepStar median earnings have shown a modest increase of around 5% in 2024 despite our recent increase of 8% to our enforced minimum pay per job. While this increase is positive, we do also see the impact of continued economic pressure on all consumers,' the company said. In contrast, domestic workers outside the platform continue to earn significantly less. The average monthly income among this group is R3,404, with female workers earning R3,349 and their male counterparts slightly less at R3,059. 'Overall, domestic workers who are not on the SweepSouth platform also saw an increase in their median earnings from last year, but still fall below the minimum wage increase as of March 1 2024,' the report noted. Though South Africa implemented a national minimum wage of R27.58 per hour in 2022, the report found that 46% of domestic workers still earn below this threshold. 'While 54% of workers earn above minimum wage, an alarmingly 46% of workers earn less,' the report stated, attributing part of this to the recent closure of a loophole that previously allowed employers to pay live-in domestic workers less. The report also showed that earnings vary by job type, with cleaners earning R3,348, gardeners R3,128, childcare workers R3,464, elderly caregivers R3,324 and cooks R3,463. SweepSouth highlighted the growing financial pressure faced by domestic workers due to the rising cost of living. Between 2023 and 2024, overall living costs surged by 15%, with housing increasing by 17%, transport by 10% and electricity by 8%. A basic monthly cost basket, including housing, food, transport and data, was calculated at R4,207, which is well above the average earnings of most domestic workers. 'This shows a deficit between domestic worker earnings and basic costs... many domestic workers still cannot afford these expenses,' the report warned. The report revealed that with many domestic workers financially supporting on average four dependents, the burden is even greater especially for single-parent households. The report found that 75% of domestic workers cannot afford to save. Only 13% reported having savings or a pension, while 18% participate in a stokvel. 'A low savings rate leaves households vulnerable to any financial shocks and prevents them from investing in their future,' SweepSouth said. Debt remained a persistent issue, with 35% of domestic workers reporting that they owe money — unchanged from the previous year. 'Of those in debt, one in three described their repayment situation as 'hopeless'. Half owe money to a shop or store, indicating a high level of easy credit and predatory lending practices,' the company noted. Access to medical aid remains elusive for most domestic workers, with the majority relying on the public healthcare system. Poor service delivery often means losing a day's wages just to receive medical care. SweepSouth Group COO Luke Kannemeyer said despite the hardships, many domestic workers are eager to improve their circumstances. The report found that 42% have completed high school, while 15% have pursued higher education. Encouragingly, 85% said they would continue studying if they had the resources. According to the 2024 first quarter Statistics South Africa Quarterly Labour Force Survey, the domestic work sector saw a decline of 7,000 jobs down 0.8% from the previous quarter. 'Despite a 5% increase in median earnings for SweepStars, earnings still struggle to beat the rising cost of living, especially for non-SweepSouth workers. Financial insecurity is widespread, with 75% unable to save money each month. While there's a positive trend towards savings and pension participation, 35% of domestic workers are in debt, with a third feeling trapped in a hopeless repayment cycle,' said Kannemeyer.
Zawya
06-02-2025
- Business
- Zawya
South Africa: Minimum wage increase is coming: Is your business prepared?
As the 2025 national minimum wage (NMW) amendments come into effect on 1 March, employers must prepare for the impact, both operationally and strategically, as they bring opportunities and risks alike. While these changes seek to improve worker livelihoods and address historical inequalities, they pose significant challenges for businesses already navigating economic pressures. Key highlights of the amendments - General minimum wage increase The NMW rises to R28.79 per hour, up from R27.58 in 2024, representing a 4.4% increase. - Learnership allowances: Weekly allowances for workers in learnership programmes have been updated in a new schedule, reflecting the importance of financial support during training. However, ensuring compliance and adequate employer contributions will require careful oversight. These amendments reflect a commitment to uplift vulnerable workers and promote skills development but demand deliberate strategies to address the ripple effects on businesses. What employers can expect The upside The 2025 amendments are a step forward in addressing income inequality. By ensuring that farmworkers, domestic workers, and EPWP participants receive fair pay, the government is making progress in reducing wage disparities. Additionally, the increased learnership allowances are expected to attract more participants into skills development programmes, which are critical for improving South Africa's long-term workforce productivity. Employers who embrace these changes may benefit from improved employee morale, reduced turnover, and enhanced productivity as workers feel more valued and supported. The challenges However, these changes are not without risks, particularly for small and medium-sized enterprises (SMEs): - Increased costs: For many businesses, the rising minimum wages and allowances may strain already tight budgets. Employers may have to reevaluate their workforce structures, potentially leading to job cuts, reduced working hours, or increased reliance on automation. - Automation and AI pressures: With the rise of automation and AI in labour-intensive industries, businesses may fast-track these technologies to mitigate costs, further marginalising youth and entry-level workers who struggle to enter the labour market. - Economic-labour growth disconnect: South Africa's economic growth is projected to remain sluggish, with GDP growth rates below the levels required to stimulate significant job creation. Traditionally, a 1% growth in GDP results in only a 0.5% growth in employment. If the NMW is not kept realistic and affordable, the labour market risks excluding youth and low-skilled workers entirely. - Regional disparities: The differentiated rates for cleaning workers could create uneven labour markets, with rural workers migrating to urban areas for higher wages. This movement risks deepening unemployment and economic disparities in less developed regions. - Compliance risks: Implementing the updated learnership allowances and regional wage variations could prove challenging for employers, especially in the informal sector. Non-compliance risks penalties and reputational damage. Striking a balance: Recommendations for employers While the amendments present challenges, proactive steps can help businesses navigate these changes effectively: - Reevaluate budget allocations: Employers should assess how the increased wages and allowances will impact their payroll and operational costs. Identifying inefficiencies and reallocating resources strategically can mitigate financial strain. - Invest in upskilling: Employers who invest in employee development, especially through learnership programmes, may benefit from improved productivity and access to tax incentives, such as the Section 12H Learnership Tax Allowance. - Adopt workforce planning: With rising costs, businesses may need to optimise workforce planning. Flexible work arrangements, cross-training employees, and automation can help maintain operational efficiency. - Engage with government support: Employers should advocate for government support measures, such as wage subsidies or tax breaks, to ease the financial burden of compliance with the new amendments. A call for collaboration The success of the 2025 amendments hinges on collaboration between government, employers, and workers. Policymakers must strengthen enforcement mechanisms to ensure compliance, particularly in the informal sector, while also providing targeted support for SMEs. Businesses, in turn, should engage in transparent dialogue with employees, helping them understand the broader implications of these changes. Conclusion The national minimum wage amendments for 2025 demonstrate progress toward a fairer labour market, but their implementation requires careful balancing of worker welfare and business sustainability. The labour market's fragility, combined with pressures from automation and slow economic growth, underscores the importance of keeping the NMW realistic and affordable. Employers must approach these changes with strategic foresight, leveraging opportunities for growth while mitigating potential risks. With robust planning and collaborative efforts, South Africa can advance toward a more equitable and resilient economy. All rights reserved. © 2022. Provided by SyndiGate Media Inc. (
