A Wage Order was published this month under the authority of the Labour Act 11 of 2007, setting a new minimum wage for all employees. Here is a look at the details.
How much is the minimum wage?
N$18 an hour.
When does it take effect?
In general, as of 1 January 2025 – but it will be phased in gradually over the next three years for domestic workers (which includes child-caregivers, cooks, drivers, gardeners and housekeepers) and agricultural workers (which includes anyone working for an agricultural undertaking or an agricultural employer).
For domestic workers, the minimum wage will be N$12 an hour from 1 January 2025, rising to N$15 an hour from 1 January 2026 and reaching N$18 an hour from 1 January 2027.
For agricultural workers, the minimum wage will be N$10 an hour from 1 January 2025, rising to N$14 an hour from 1 January 2026 and reaching N$18 an hour from 1 January 2027.
Can it be paid partly in kind, such as through the provision of food or housing?
No. The minimum wage must be paid in cash. If in-kind contributions are provided to an employee, they must be over and above the minimum cash wage.
How is the minimum wage calculated?
It applies to the normal ordinary hours of work. It does not include any ‘extras’ – such as payment for overtime or work on public holidays, tips, bonuses, equipment, food or accommodation allowances, S&T payments and medical aid or pension contributions. These must be paid over and above the regular minimum wage
How will it be enforced?
The national minimum wage will be treated as a binding term of every contract of employment, collective agreement or law on wages – unless any of these authorities provides a wage that is more favourable to the employee.
Is anyone exempt?
Yes. The Wage Order does not apply to members of the Namibian Defence Force, the Namibian Police, city police services, the Namibia Central Intelligence Service or the Namibia Correctional Service. These employees are not covered by conditions of service in the Labour Act.
The Wage Order applies to all other employees, including employees placed by a private employment agency.
The Labour Act allows any employer to apply to the minister for an exemption from a Wage Order. An exemption can be granted for either one of two reasons: (1) The terms and conditions of employment that apply to the affected employee are at least as favourable as the provisions of the Wage Order.
(2) There are special circumstances that justify an exemption in the interests of affected employees. The ministry must notify the affected employees if the minister grants an exemption.
Who decided on this minimum wage?
The Wage Order was issued by the minister of labour, based on the recommendation of the Wages Commission.
The Labour Act authorises the establishment of the Wages Commission. Its composition changes from time to time, but it must always include people nominated by registered trade unions and registered employers’ organisations.
In this case, a Wages Commission was convened in February 2021 to investigate the possibility of a minimum wage.
Interested parties were invited to make submissions to the commission. It held 13 public hearings and stakeholder engagements throughout Namibia, and received 115 oral submissions and 60 written submissions.
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It was initially supposed to report to the minister on 30 September 2021, but this deadline was extended to 31 March 2022.
What is the purpose of the minimum wage?
It is designed to progressively achieve the goal set out in Article 95(i) of the Constitution, which commits the state to ensuring workers “are paid a living wage adequate for the maintenance of a decent standard of living and the enjoyment of social and cultural opportunities”.
When will it be revisited?
The Wage Order must be reviewed by the Wages Commission every two years.
The order mysteriously says this review will be “in addition to any annual inflationary increase provided for in the Act” – but the Labour Act is currently silent on inflationary increases.
Dianne Hubbard is a legal consultant with many years of experience in public interest law and a passion for trying to make legal issues clear and accessible.
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Source link : https://allafrica.com/stories/202408270491.html
Author : [email protected] (Namibian)
Publish date : 2024-08-27 14:46:00
