The minimum wage of K3.50 per hour has been in place for the past two years despite the ever increasing prices of goods and services.
Labour and Industrial Relations Minister, Mehrra Kipefa, says there are suggestions to increase the minimum wage to K5 however, the board responsible for it will not meet until it has a new chairman.
While some companies comply with it, others do not and the Labour and Industrial Relations is looking at creating dialogue with the Internal revenue Commission.
“Most are saying we are paying tax, but we’ll talk to IRC to which companies comply with annual return statements so they must at least comply with the standard minimum wages to their workers,” said Kipefa.
Failure to conform to the minimum wages policy can result in deregistration of companies.
“That’s the worst case scenario,” stated the Minister.
“But we have social partners who have agreed for us to move to K5 but as I’ve said, it takes a wide dialogue for companies, industries and the government to come together to consolidate on one mindset on how to raise the minimum wage to a level where employees can find the money and pay their workers.
“But the minimum wage board will meet soon, we are just working on the chairperson, once the chairperson is appointed, then we convene a minimum wage board meeting soon to determine that, but it’s still on.”
With the ever increasing prices of goods and services, the raise will be a relief for low income earners.