Fedusa proposes R33 per hour wage to bridge working poverty gap

The Federation of Unions of South Africa (Fedusa) has called for the national minimum wage (NMW) to increase from R30.23 to at least R33 per hour from March 1 2027.

Fedusa made this call in its submission to the National Minimum Wage Commission as part of the 2027 NMW review process. The commission had called for public input on the 2027 NMW in August and the closing date for submissions was September 4.

Fedusa deputy general secretary Ashley Benjamin said the federation believes its proposal is a responsible and necessary step, particularly given the continued pressure on workers from rising food, transport, electricity and other household costs.

“Let me be very clear: R33 an hour is not a living wage. It is a step towards a living wage,” Benjamin said.

He said a minimum wage must not become a maximum wage.

“The reality is that many workers can be employed and still live in poverty. When a worker earns minimum wage, a significant portion of that income is immediately absorbed by basic necessities.”

Fedusa said it recognises the country’s unemployment crisis and pressures facing business, particularly vulnerable SMMEs.

“We are not calling for an approach that ignores those realities. We are calling for a balanced and progressive pathway, one that protects workers’ purchasing power, supports business where necessary, strengthens collective bargaining and improves enforcement of the minimum wage.”

Employment must provide a pathway out of poverty, not simply a legal relationship between an employer and an employee

—  Ashley Benjamin, Fedusa deputy general secretary

Fedusa said its proposed increase represented approximately 9.2%, or R2.77 more per hour, and would raise the monthly earnings of a worker working a 40-hour week to approximately R5,720 before deductions.

It said the proposed increase must be understood as a necessary transitional step towards a living wage, rather than the achievement of a living wage.

Fedusa said research from the University of Cape Town places a national living-wage benchmark at approximately R10,000 to R11,000 per month, while demonstrating significant differences across provinces.

“Fedusa does not regard this figure as a guarantee of a good quality of life. Rather, it should be understood as an important benchmark and a floor from which workers can begin to improve their quality of life and move towards a more dignified standard of living,” Benjamin said.

He said the gap between the statutory minimum and the cost of meeting basic needs is further illustrated by household affordability data.

“The Pietermaritzburg Economic Justice and Dignity Group reported an average household food basket of R5,479.80 in August, while its basic nutritional food basket stood at R6,597.25.”

He said South Africa needs a deliberate, credible and progressive pathway from the minimum wage towards a living wage.

“Employment must provide a pathway out of poverty, not simply a legal relationship between an employer and an employee.”

Fedusa said it recognises the country’s severe unemployment challenge, with the official unemployment rate standing at 33.6% in the second quarter of 2026.

However, the federation said unemployment cannot be used to justify keeping employed workers trapped in working poverty.

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