Image via Adobe Stock
Image via Adobe Stock
In a report focusing on minimum wages in 54 different countries around the world, South Africa’s has remained unchanged in 2020 and has ranked just above Brazil and below Peru.
South Africa’s minimum wage as of early 2020, has tallied in at $235 which converts to an iota of R3 400.23.
By definition, the minimum wage should protect employees against unduly low earnings.
Picodi.com released a report, comparing how the minimum wage rates have changed in various countries in 2020. The report also distinguished whether the minimum income is enough to afford the minimum comfort of living.
The top ten countries with the “best” minimum wage are:
The countries with a minimum wage that fell in the bracket of between $200 and $300 are:
South Africa ranks outside of the top ten highest and top ten lists and ranks seventh out of the countries with a minimum wage of between R3 000 and R4 000.
The highest year-to-year increase in the minimum wage was noted in Nigeria at 65% in 2020, compared to 2019. However, there’s a catch-after converting it into US dollars. The amount is still found to be one of the lowest at just $74. This converts to a mere R1 069.40.
The shopping basket created for the purpose of this report consists of eight items: Bread, milk, eggs, rice, cheese, meat, fruit and vegetables. Even though this list is short and frugal, these products meet the nutritional needs of an adult and their prices are constantly monitored around the world.
At the beginning of 2020, food prices from the list are as follows:
The total price of basic food products amounts to R1 203.64, which is 3.84% more than in the previous year.
The basic shopping basket makes 34.8% of the minimum net pay. With 2019’s prices, the same products made 33.5% of the minimum wage at that time. This means that, in South Africa, the increase in prices outran the increase in wages.
There are just as many different ways to spend money as there are definitions of the comfort of living. Prices of the same food products were compared in various countries, as well as how much of someone’s budget one would need to be spent on those essential food items.
In this comparison, South Africa placed 37th. The best ratio of food prices to the minimum wage was noted in Australia, followed by the United Kingdom (UK) and Ireland. In these countries, the basic food products are worth around 7% of the minimum wage.
Lower in the ranking was Pakistan (39th place), Mexico (43rd place), Russia (44th place) and India (49th place).
In some countries, such as Nigeria or Uzbekistan, it is so low that it does not cover the costs of even the most basic shopping basket.