What South Africa's minimum wage means for your bank balance

A study from OECD shows how South Africa's  minimum wage fairs with the rest of the world (Shutterstock.com)

Have you always wondered if you're getting your money's worth? Read on to find out.

The Organisation for Economic Co-operation and Development recently released a study revealing the minimum wages of countries across the world – and how South Africa compares. The tallies showed that in outlying areas, South Africa’s minimum wages range from an hourly rate of R9.30 per hour for domestic workers, to R30.40 per hour for assistant managers in the wholesale and retail sector.

BusinessTech took the study a step further and investigated how much South Africa’s domestic workers earn in comparison to the rest of the world. Working off R10.95, the amount per hour earned by domestic workers in urban areas and the World Bank’s PPP ratio data for South Africa (0.5:1), the website revealed that domestic workers in the country earn a miminum wage of $1.85.

While this figure is higher than the lowest-ranked country, Mexico, with a minimum wage of $0.80, it falls lower than the second lowest country, Estonia, which carries with it a minimum wage of $2.80.

Are you paying your domestic worker enough? Use this cool tool to measure your domestic worker’s living wage against their monthly income.

Are you making enough?

In case you are wondering if your employer pays you your money’s worth, perhaps so you can afford to pay your domestic worker, attempting to find the answer in the Basic Conditions of Employment Act will yield you no answers. Compared to other countries, South Africa does not have a national minimum wage.

Look up: The average salary of your position

Instead, the country employs a minimum wage per industry. But by the rules outlined in the act, the reigning Minister of Labour (Minister Mildred Oliphant, if you didn’t know) is permitted to set the minimum terms and conditions of employment, including minimum wages.

These however, are only placed in areas of economic activity where labour is believed to be vulnerable. In other words, should your employer decide to cut your pay to reduce costs, if you work in an industry susceptible to changes to the economy, you have the right to raise your concerns.

But not all is lost if you are underpaid. If you love your job and are willing to stick around, your first step should be to talk to your boss to see if you can’t be supported in other ways. If you’re ready to move on to greener pastures, find your next career with Careers24.