Question

“Minister of labour, Thulas Nxesi, has gazetted South Africa’s new minimum wage which will take effect from 1 March 2020.
The gazette states that the new national minimum wage is R20.76 – an increase of 3.8%”.
Adapted from: https://businesstech.co.za/news/government/374920/6-planned-laws-that-government-has-just-announced-for-south-africa/
Accessed: 21/02/2020
Provide a discussion on the welfare effect of the above, that illustrates the case for when the above results in unemployment in the market for domestic workers as well as a case for when the above has no effect on the market for domestic workers. Use a diagram to support your discussion.

N.B.N.B Please include diagram

Answer 1

The gazette expresses that the new public the lowest pay permitted by law is R20.76 . An expansion of 3.8%. This is well underneath the ideal increment of R22.50 which has recently been skimmed by the nation's significant associations. The associations contended that the degree of R20 every hour was settled at in 2017, when the NMW was first postponed, and it has no changed since than even while the typical cost for basic items in the nation kept on rising and the economy decayed. Likewise with the first the lowest pay permitted by law presented on 1 jaunuary 2019, the periodical additionally plot areas.

This incorporates: Farm laborers are qualified for a lowest pay permitted by law of R18.68 every hour; Domestic specialists are intitled to a lowest pay permitted by law of R15.57 every hour; laborers utilized on an extended public works program presented a public the lowest pay permitted by law of R11.42 every hour. South Africa authoritatively presented a public the lowest pay permitted by law in January 2019 to shield laborers from "absurdly low wages".

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