Just as the government of Nigeria is yet to ascent to the new minimum wage of N30, 000 as demanded by the organised labour, her counterpart Cyril Ramaphosa, South Africa’s President has signed into law the national minimum wage bill for his country his office has said, as part of efforts by the government to tackle wage inequality in Africa’s most industrialized economy.

Ramaphosa’s office said in a statement that while the national minimum wage will not end income inequality, it was a first step towards addressing the clamour for a living wage.

Supporters of the minimum wage say it will reduce inequality and stimulate economic growth as workers spend more.

But critics say it could lead to increased unemployment, already at record highs, because some employers won’t be able to afford higher wage bills.

Thousands of union members protested against the proposed minimum wage in April, saying it was too low.

The National Minimum Wage Act sets South Africa’s minimum wage at 20 rand ($1.45) an hour, equal to 3,500 rand per month. The law will come into force on a date to be determined by Ramaphosa, the presidency said.

Reuters, with additional report