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Category: Uncategorized

Media-Statement: National Minimum Wage proposed increase of 5%

Commission’s recommendation for a 5% increase in the National Minimum Wage will deepen the economic crisis and worker poverty.  The National Minimum Wage [NMW] was introduced in January 2019 to improve the wages of millions of the lowest paid workers and protect workers from unreasonably low wages.  The NMW was set at R20 an hour…
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January 2020 Household Affordability Index shows dramatic spikes in food prices

That ‘’Janu-worry’’ has entered the national lexicon is an indication that the household affordability crisis is no longer solely a working-class issue.  More households are struggling to make ends meet and this struggle is getting harder.   The January 2020 Household Affordability Index shows dramatic spikes in food prices.   Month-on-month the cost of the…
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Spikes in Food Prices takes cheer out of festive season for poor and working-class families

December has seen dramatic spikes in food prices with prices increasing for most of the meats and vegetables in the household food basket. It is expected that prices rise annually in December. These increases however are harder to absorb during this time because of the shorter working days and hours in this period. Workers have…
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Deficit in the National Minimum Wage widens by 5% year-on-year.

We are close to marking one year since the introduction of the National Minimum Wage.  The value at which the NMW is set will be reviewed.   Workers work to support their families.  Workers reasonably expect that their wages will cover the real costs of several core basic goods and services.   To be productive…
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August 2019 Household Affordability Index: Transport and Electricity takes up 58,7% of the August National Minimum Wage (exemption level) of R3 024.

One of the most striking features of the August HAI is that of the influence of the recent taxi fare hikes and electricity increases for low-paid workers.  In Pietermaritzburg taxi fares increased by ±7,7% and electricity by 13,07.  In August the typical transport cost for a low-paid worker in Pietermaritzburg is R1 176 per month and…
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Calls for South Africans to save money in the current socio-economic context may be misguided.

Calls for South Africans to save money in the current socio-economic context of very low baseline wages, high levels of unemployment and escalations in the cost of basic goods and services may be misguided. In our analysis this is because for most South Africans paid very low wages (1) savings are not generated from surplus…
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New zero-ratings (VAT exclusions) have had no impact on the food baskets of struggling South African households.

The introduction of new foods for zero-rating from April 2019 have not had any impact on the household affordability crisis. Read more…

Eskom hike wipes out R80 increase on pensioners’ old-age grants

Government approved a 13,8% increase on Eskom’s electricity tariffs.  Eskom’s tariff hike will wipe out the recently announced R80  monthly old-age grant increase for pensioners Read more…

Response to MTBPS 2018

A R20 saving on VAT by zero-rating cake flour and sanitary pads is not enough to protect millions of South African households from a deepening food affordability crisis.  In the face of the scale, depth and negative consequences of the food affordability crisis facing millions of South African households the measures proposed in the MTBPS…
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Medium-Term Budget Policy Statement: what we will be looking out for:

It seems to us that the most urgent political priority for South Africa is dealing with our economic crisis in a manner that reduces inequality and eradicates poverty.  Deliberations around the MTBPS should by necessity be guided by and respond to this political priority.  In assessing the MTBPS, we would be looking at (1) measures…
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