Lahja Nashuuta
The government’s endorsement of the national minimum wage of N$18 per hour, as proposed by the labour ministry, has been met with both enthusiasm and derision.
Several workers, especially those within the security industry, said it is “better than nothing”, as they can barely survive on their current earnings.
The minimum wage is set to come into effect in January 2025, and is targeted at perceived unskilled labourers such as domestic workers and security guards.
One such worker, Selma Hiskia, said she struggles to survive on her N$2 500 monthly salary.
The single mother of three said she hopes the new minimum wage will help her meet some financial needs.
Hiskia has been working for a local security company for more than 15 years as a security guard, stationed at a state-owned enterprise in Windhoek.
She currently earns N$7.20 or N$86.50 per day.
Her monthly basic salary stands at N$2 592, of which N$200 is deducted for transportation and N$50 for administration.
Narrating her story, she said surviving on her salary is a challenge.
“I pay school fees for my children. I use public transportation to go to work. But sometimes I don’t have money to go to work, which means that the money you worked for goes straight to transport costs,” she lamented.
Hiskia lives in Windhoek’s Havana informal settlement.
She and her colleagues walk from the city centre.
“We have created a WhatsApp group, where we alert each other to the meeting point and departing hours. Walking in a group saves us from criminals, especially during night-time and early morning hours,” she stated.
Although the company deducts transportation fees from their salaries, in most cases they are told that the cars are broken down, and they must find their way to work.
“If you don’t show up to your work, you will not get paid for that day. If you are absent for more than three days, you will be fired,” she emphasised.
While she welcomed the government’s proposal for a minimum wage, Hiskia also wants the government to enforce benefits such as overtime, pensions and medical aid.
Her daily challenges are similar to those of another security officer, who opted to remain anonymous for fear of retribution.
John (pseudonym) said he is required to work every day of the month, including weekends and public holidays, for N$8 per hour.
He said his employer, whose head office is in Swakopmund, has a tender to provide security services at all municipalities in the country and some state-owned enterprises.
“I am guarding government facilities and assets worth millions, without a gun. The company only gave us the uniform, which is also deducted from our salary,” he added.
Just like Hiskia, John said he does not have benefits such as overtime, medical aid or a pension. “I have worked for this security company for more than 20 years, but I am still getting less than N$3 000,” he complained.
John proposed a law which would force employers to give weapons to security officers who are guarding valuable assets.
Living wage
Labour expert Herbert Jauch said the minimum wage of N$18 per hour proposed by Cabinet would present an improvement for many lowly-paid workers, particularly those in sectors such as farming, security work, domestic work and the retail sector, as well as those working in the informal sector of the economy.
“The implementation of the minimum wage at least moves it to N$3 340 per month, which would be a bit better. However, this is far from a living wage. This is far from a wage that would allow workers to overcome poverty. It’s a little bit of poverty alleviation, and it would also reduce income inequality here in Namibia. But it is not taking workers to a point where we are talking about a living wage, as envisaged in our Constitution,” he stressed.
He said a proper living standard will not be achieved through the minimum wage, but it is a step in the right direction.
Economist Omu Kakujaha-Matundu said he does not know how the government arrived at N$18 per hour for the minimum wage.
“If you assume that a working month is 30 days, then (N$18 x 8 hours) x 30 days = N$4 320 per month. Would you regard that as a decent wage? I don’t think so. If you subtract rent, transportation and utilities, how much is left for school uniforms and other necessities?” he asked.
Adding to that, there is no decent living at the minimum wage, and it looks like a starvation wage, the economist continued.
Mahongora Kavihuha, the secretary general of the Trade Union Congress of Namibia (Tucna), said although it is a good move by the government, more discussions are needed.
The national minimum wage is meant for all sectors.
However, it does not mean an employer can now reduce the salaries of employees who are already paid more than the minimum wage.
“There is a difference between a living wage and a minimum wage. If you look at the N$18 per hour, it will amount to N$2 000 or N$3 000. But if you look at the cost of living in Namibia, it goes beyond that. So, the N$18 per hour is not in line with the living standards in Namibia,” said the unionist.
Local psychologist Shaun Whittaker said poor wages are linked to poor mental health.
“Everyone needs proper, decent food and housing – and from the mental health literature, there is a strong link. For instance, in Namibia, there is a high suicide rate because of unemployment, and it’s mainly young people who feel they are a burden to the family, and feel useless,” he added.
Whittaker described the proposed minimum wage as insufficient for people to make a decent living.
“People need to eat; people need to live. We need to get away from the culture of underpaying people, and this inadequate payment system. We need to aim for a living wage, and not a minimum wage,” he argued.
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