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Wage gap between highest and lowest narrows in SA

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The wage gap between the highest and lowest earners in South Africa is narrowing.

This is according to the 16th South African Employment report released earlier.

It says the minimum wages of elementary workers in the formal sector increased much faster than those in the middle and faster than those in some management positions.

The report shows the lowest earners are closing the wage gap in skilled grades and at junior management and supervisor levels.

It shows elementary workers had bigger increases in most sectors over the past 20 years than that of skilled people.

This has led to a narrowing in the wage gap, but the poverty gap continues to grow as unemployment levels continue to grow.

The report says the expanded definition of unemployment is nearing record highs.

It’s feared that when South Africa implements a minimum wage of R3 500 a month in 2018, this could lead to some job losses, especially in the informal sector.

Economist Mike Schussler says there should not be a big impact in the formal sector. However, he says it will help to further close the wage gaps and help reduce inequality in the workplace.

 

 

 

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