On 1 January 2025 the national minimum wage (NMW) for all Namibians, except domestic and agricultural workers, will be N$18 per hour, meaning wages of workers currently earning less than N$18 must be adjusted to at least that amount.
Meanwhile, the minimum wages for domestic and agriculture workers will be increased gradually over a three-year period until they reach N$18 per hour by 1 January 2027.
This minimum wage development is pursuant to Article 95 of the Namibian Constitution, subsection (e), that requires the State to adopt policies aimed at: “Assurance that workers are paid a living wage adequate for the maintenance of a decent standard of living and the enjoyment of social and cultural opportunities”.
“The minimum wages must be paid in cash or cash transfer and may not be reduced by rations or other in-kind donations. Any increase in the NMW during the three-year period will also apply to these groups. The introduction of the NMW marks a significant milestone in our nation’s journey towards social equity and economic justice. For too long, countless Namibians have worked tirelessly, often under harsh conditions, yet they have struggled to make ends meet. They have contributed to our economy, built our communities, and shaped the fabric of our society…. all while facing the burden of inadequate pay. This is not merely a matter of economics; it is a matter of dignity, respect and fairness,” said labour, industrial relations and employment creation minister, Utoni Nujoma.
Speaking at the Cabinet committee briefing yesterday at the government’s information centre, Nujoma said the introduction of the NMW is not just a policy change but a commitment to the core values that define Namibia as a nation.
“It is a pledge that government will work to ensure every worker, regardless of occupation, receives a fair wage that reflects the dignity of his or her labour and the cost of living in our beloved country,” Nujoma added.
Namibia currently has minimum wages in three sectors that were set through collective bargaining agreements that the labour minister ordered to be extended to the entire sectors pursuant to Section 71 of the Labour Act. These payment orders cover the security sector, where the minimum wage is N$8.75 per hour; the agriculture sector, N$6.00 per hour plus food rations; and the construction sector, where the wages for job categories differ, with the lowest wage being N$17.83 per hour. The current minimum wage for domestic workers, set by a wage order, is N$9.03 per hour.
In June 2024, Cabinet endorsed the submission of the labour minister to introduce the NMW of N$18.00 pursuant to the Labour Act. This was done after consideration of the report and recommendations of the Wages Commission, based on its intensive country-wide investigation, consultation with the tri-partite Labour Advisory Council, and upon obtaining experts advice. As a result, an official notice of the Wage Order setting the NMW was published in the Government Gazette on 07 August 2024.
However, sectors not specified in the Wage Order have remained at the mercy of employer wage offers, most of which have been very low. This resulted in most employees settling for less for the sake of putting bread on the table.
“The extensive consultations by the ministry have highlighted the urgent need for a system that protects our most vulnerable while encouraging economic growth. This National Minimum Wage will not only uplift those at the bottom of the pay scale but also stimulate our economy by increasing purchasing power and fostering consumer spending. I want to assure you this decision has not been taken lightly. We have thoroughly examined the economic implications and sought to strike a balance that supports both workers and employers,” Nujoma added.
Speaking directly to employers, Nujoma emphasised the importance of complying with the National Minimum Wage to foster a fair and equitable working environment for all.
“The implementation of the NMW is not only a legal obligation but also a moral responsibility. It serves as a critical measure to ensure all workers receive fair compensation for their labour, promoting dignity, stability, and a better quality of life. I urge all employers to review their wage structures and ensure they align with the new NMW. By doing so, you contribute to a stronger economy and a more motivated and productive workforce. Compliance is essential for creating a level playing field in our labour market, ensuring all businesses can thrive while supporting their employees adequately,” Nujoma stressed.
In a recent opinion piece, social commentator, Herbert Jauch said the introduction of the NMW is long overdue. As a labour researcher and the chairperson of the Economic and Social Justice Trust, Jauch noted there should be no illusion about the ability of the national minimum wage to overcome poverty.
“At N$18 an hour, workers will still struggle to make ends meet and will still have to share their meagre income with others. While the national minimum wage is a step in the right direction, much more will need to be done to achieve a living wage and a decent standard of living for all,” Jauch stated.