By Shaffie A Mtambo
The Malawi Government is set to gazette a new minimum wage on May 1, with workers and employers holding different views on the proposed increase.
Minister of Labour Peter Dimba confirmed that the minimum wage review process has increased, with the government targeting International Labour Day for gazetting the new rates.
However, Minister Dimba declined to reveal the final figures, stating it would be unethical before official publication.
“We are done and May 1 is our target, but you know it involves paperwork.It would be unethical of me to leak the figures before the gazetting.”said Dimba
The Malawi Congress of Trade Unions (MCTU) has proposed a 100 percent increase in the minimum wage, pushing for it to rise to K180,000 from the current K90,000. On the other hand, the Employers Consultative Association of Malawi (Ecam) tabled a 40 percent increase, suggesting K126,000.
MCTU president Charles Kumchenga argued that the workers deserve a higher wage, while Ecam executive director George Khaki cited economic hardships, including inflation, forex shortages, low production, and weak demand, as reasons for a more modest increase.
The Centre for Social Concern (CfSC) reports that the cost of living for a family of six stood at K503,876 in February, well beyond both the current and proposed minimum wages. This highlights the growing pressure on workers and the need for a living wage that can meet the basic needs of families.
The government’s decision on the minimum wage will have significant implications for workers, employers, and the broader economy. While workers are pushing for a substantial increase, employers are cautioning against a hike that could exacerbate economic challenges.
The Labour Minister has the authority to revise the minimum wage without a binding agreement from the Tripartite Labour Advisory Council (TLAC), provided the process follows due consultation.
