CHAMWE KAIRA
The agricultural sector has warned that the current trajectory of Namibia’s National Minimum Wage (NMW) implementation could undermine employment growth, following preliminary data indicating a decline in permanent jobs despite improved production conditions.
According to preliminary findings from the Agricultural Employers’ Association (AEA) 2026 Wage Survey, permanent employment in the sector fell by 4.5% compared to the 2024 survey period.
This decline was recorded even though the sector reportedly experienced better production conditions over the past two years.
The reduction has largely been attributed to rising labour costs linked to the introduction of the National Minimum Wage.
AEA chairman Hellmut Förtsch said the current wage environment poses a risk to both government and employer objectives of expanding employment in the agricultural sector.
He cautioned that higher labour costs are placing significant pressure on employers, particularly in a sector that already operates with high input costs and seasonal labour demands.
He also raised concerns about what he described as insufficient tripartite engagement on the implications of the minimum wage for employers and the broader sector.
According to Förtsch, repeated requests by the Namibia Agricultural Labour Forum (NALF) to engage stakeholders on both cash wages and in-kind benefits had not been successful.
Under the wage order, the agricultural sector is required to implement a phased hourly minimum wage, starting at N$10 per hour in 2025, rising to N$14 in 2026, and reaching N$18 per hour in 2027.
The gradual increases are intended to align wages across the sector over time.
However, Förtsch warned that the structure of the wage order could significantly increase total labour costs.
He noted that allowances such as food and accommodation are required to be provided on top of the cash wage, rather than being included within it.
This, he said, raises the effective cost to employers by approximately N$10 per hour, a level he described as “unreasonable and, in many cases, unaffordable.”
He further argued that the agricultural sector’s working conditions make it unique, as many employers already provide accommodation and meals to workers.
As a result, he said the combined cash wage and mandatory in-kind benefits place the sector at a cost disadvantage compared to other industries.
The AEA has cautioned that without further engagement between government, employers and labour representatives, the current wage path could continue to place pressure on employment levels in agriculture, particularly in rural areas where the sector remains a key source of jobs.
