We Are Concerned Over National Minimum Wage Increase Starting In March – Agri SA

Agri SA has expressed concerns over the Department of Employment and Labour’s increase of the National Minimum Wage effective from March,1 2022.

The agricultural organisation said it questioned how many farmers would continue to operate their businesses profitably and contribute towards employment creation in labour-intensive sub-sectors.

Agri SA said the country’s farmers do not have the government production support that their counterparts in the US and Europe have.

The association said these farmers must accept prevailing prices in a market and face an average profit margin of 5.97 percent depending on the type of activity.

’’The likelihood of our farmers operating at a loss is becoming more evident day after day and the government must create a conducive policy, cost and infrastructure environment to ensure profitable farming in South Africa.”

Agri SA also attributes the large-scale locust outbreaks that have occurred in parts of the Northern Cape and Western Cape as part of the problem.

The organisation pointed to the conditions of rural and some provincial roads which have been rendered ‘impassable’.

“Farmers will struggle to get their crops to the silos, which may have knock-on effects such as temporary supply problems and a decrease in quality. Farmers cannot bear the additional cost of repairing these gravel roads,” said Agri SA.

The national minimum wage is set to increase from R21.69 to R23.19, which is a 6.9 percent increase. According to PayScale, the average base salary (gross income before taxes and deductions; it does not include benefits, bonuses, or commissions) for a farm worker in the country is R12 000.