The Namibian Cabinet has endorsed a landmark decision by the Minister of Labour, Industrial Relations and Employment Creation (MLIREC) to implement a national minimum wage (NMW) starting January 2025. This move is poised to benefit the lowest-paid workers across the nation, aiming to reduce income inequality and alleviate poverty.
According to a statement released by MLIREC Executive Director Lydia Indombo on Sunday, the NMW will be set at 18 Namibia dollars (approximately 0.96 US dollars) per hour, with a scheduled review after two years. This follows an extensive investigation by the Wages Commission, which was appointed in February 2021 by MLIREC Minister Utoni Nujoma to examine various industries and recommend a fair minimum wage.
“The introduction of the NMW does not replace bargaining power; it simply aims to set a floor wage, especially for the lowest-paid employees. Employers are prohibited from reducing current wages to meet the NMW. The NMW is a minimum, not a ceiling,” Indombo emphasised.
Currently, Namibia has minimum wages in sectors such as security, agriculture, construction, and domestic work, leaving many workers in unregulated sectors vulnerable to exploitative “offer and take” wages. The new NMW is intended to extend protections to all employees, with certain exemptions that will be specified in a forthcoming Wage Order.
In a phased approach, domestic workers will see their wages increase from the current 9.03 Namibia dollars per hour to 12.02 in the first year, 15.01 in the second year, and reaching 18 in the third year. Similarly, agricultural workers’ wages will rise from 6 Namibia dollars per hour, plus in-kind payments, to 10 in the first year, 14 in the second year, and 18 in the third year, excluding in-kind payments.
“A Government Gazette notice in July 2024 will provide full details of the NMW. The implementation aims to improve wages for the lowest-paid workers, reduce income inequality, alleviate poverty, and improve individual and household income, achieving a decent standard of living for all,” Indombo concluded.
The establishment of a national minimum wage is a significant step towards enhancing the economic well-being of Namibia’s workforce. As the country moves towards its implementation, the anticipated improvements in wage levels and living standards mark a critical stride in its commitment to social and economic justice.
