The Cabinet has given its endorsement to the Minister of Labor, Industrial Relations and Employment Creation (MLIREC) for the implementation of a National Minimum Wage (NMW) effective January next year.

According to a statement released by MLIREC Executive Director Lydia Indombo on Sunday, the NMW is set at N$18 per hour, with a scheduled review after two years to ensure its effectiveness.

The decision to establish the NMW follows the appointment of a Wages Commission by MLIREC Minister Utoni Nujoma in February 2021. The commission was tasked with investigating various industries nationwide and recommending a proposed NMW. The wage will apply to all employees, with certain categories exempted by the Minister in a Wage Order, and will include related supplementary minimum conditions of employment.

Indombo emphasized that the introduction of the NMW does not diminish bargaining power but rather aims to establish a floor wage, particularly for the lowest-paid employees. Employers are prohibited from reducing current wages to meet the NMW, which is intended as a minimum, not a ceiling.

Currently, minimum wages exist in sectors such as security, agriculture, construction, and domestic work, leaving other sectors vulnerable to low "offer and take" wages.

For domestic workers, the NMW will be phased in over three years, starting at N$12.02 per hour in the first year, increasing to N$15.01 in the second year, and reaching N$18 in the third year, compared to the current rate of 9.03 per hour.

In the agricultural sector, the minimum wage will increase from N$6 per hour plus in-kind payments to N$10 in the first year, N$14 in the second year, and N$18 in the third year, exclusive of in-kind payments.

Indombo announced that full details of the NMW will be provided in a Government Gazette notice in July 2024. The implementation aims to improve wages for the lowest-paid workers, reduce income inequality, alleviate poverty, and enhance individual and household income to achieve a decent standard of living for all.