Niël Terblanché
In a decision aimed at addressing income inequality and improving the standard of living for its citizens, Namibia’s Cabinet has approved the country’s first national minimum wage, set to take effect on 1 January 2025.
The wage order, which was published in the government gazette on 7 August, establishes a national minimum wage of N$18 per hour for all private-sector employees.
According to the latest decisions taken by Cabinet, the new minimum wage is part of a broader effort by the Namibian government to alleviate poverty and ensure that workers receive fair compensation.
The initiative is particularly focused on lifting the wages of the lowest-paid employees, such as domestic and agricultural workers, whose wages will be gradually increased until they reach the N$18 per hour mark by January 2027.
For domestic workers, the wage will start at N$12 per hour in 2025, increase to N$15 in 2026, and finally reach N$18 in 2027. Agricultural workers, who currently earn a minimum of N$6 per hour plus in-kind benefits, will see their wages rise to N$10 in the first year, N$14 in the second year, and also reach N$18 by 2027.
The introduction of the national minimum wage follows extensive consultations and a comprehensive study conducted by the Wages Commission, appointed by the Minister of Labour, Industrial Relations and Employment Creation, Utoni Nujoma, in February 2021.
The commission’s mandate was to investigate wage practices across various industries and recommend a fair and sustainable minimum wage that could help reduce income disparities in the country.
The new minimum wage guidelines serve as a baseline rather than a ceiling, ensuring that no worker is paid less than this amount.
As a result of the Cabinet’s decision, the labour ministry encourages employers to offer wages above the threshold where possible, and the minimum wage will be subject to review every two years to assess its impact and effectiveness.
During the consultation process, various workers’ unions expressed cautious optimism, viewing the proposed minimum wage as a key foundation for future improvements through collective bargaining.
The Metal and Allied Namibian Workers Union (Manwu), amongst others, indicated that the new minimum wage policy is an improvement in the government’s efforts to create a more equitable society in Namibia.
