South Africa to Increase National Minimum Hourly Wage by 9.6%

The South African nation is awaiting the speech of the country’s finance minister, Enoch Godongwana, due on Wednesday, where he is expected to present South Africa's budget for the 2023 fiscal year that would probably provide hints on where the financial policy of President Cyril Ramaphosa's government is headed.

South African Labor and Employment Minister Thulas Nxesi announced on Tuesday in the official Government Gazette that the national minimum wage will be raised by 9.6 percent and will come into effect as soon as next month.

The increase, which is almost two times higher than the inflation rate of 5.4 percent forecast by the country’s central bank for the next year, will see the minimum wage increasing to 25.42 rand ($1.39) an hour from 23.19 rand.

The labor minister's announcement came a day before the finance ministry presented the country’s annual budget, where a more detailed view of the minimum wage is expected to be included.

South Africa's Finance Minister Enoch Godongwana is expected to address the nation on Wednesday to unveil the country's budget for the 2023 fiscal year, according to South African media. Godongwana is predicted to give updates and forecasts on the country's revenue, expenditure and economic growth.

The minster might also outline a plan for the government of President Cyril Ramaphosa to participate in the debt of the state-owned power company Eskom, which produces nearly 95 percent of the country's electricity.