Chamwe Kaira
The Agricultural Employers’ Association (AEA) has expressed dissatisfaction with the Ministry of Labour’s stance on in-kind fringe benefits for farm workers, which must be provided in addition to the new National Minimum Wage (NMW).
The association says it will continue discussions with the ministry and has called for proper consultation to avoid further job losses.
From this month, the minimum cash wage for farm workers has increased from N$10 to N$14 per hour. However, existing in-kind benefits remain compulsory.
These include housing with water and sanitation, as well as one of three food or land options.
The options are access to grazing or arable land to keep livestock, free food for the worker and family, or a monthly ration allowance of N$650.
The AEA has not persuaded the ministry to allow in-kind benefits to be counted as part of the hourly wage.
Farmers are therefore required to pay the full N$14 per hour in cash while also providing the fringe benefits.
The increase for agricultural workers forms part of the phased implementation of the NMW order published in the government gazette on 7 August 2024.
While most workers were required to reach N$18 per hour by 1 January 2025, farm workers were granted a three-year adjustment period.
Their minimum wage is set at N$10 per hour from January 2025, N$14 per hour from January 2026, and N$18 per hour from January 2027.
The regulations clarify that the national minimum wage does not replace the 2023 farm worker minimum wage package.
Farm workers remain entitled to all previously agreed fringe benefits, including housing, water, electricity and food provision.
The national minimum wage was gazetted under a wage order issued in terms of the Labour Act, 2007.
The order, published in government gazette No. 8409 on 7 August 2024, was issued by the then Minister of Labour, Industrial Relations and Employment Creation, Utoni Nujoma, following consideration of a report and recommendations by the Wages Commission.
The order applies to all employees and employers, including workers placed by private employment agencies.
It excludes members of the Namibian Defence Force (NDF), the Namibian Police Force, municipal police services, the Namibia Central Intelligence Service and the Namibia Correctional Service.
It states that every employee is entitled to a wage not less than the national minimum wage, which forms part of every contract of employment unless a contract, collective agreement or law provides a more favourable wage.
Employers are required to comply with the new minimum, which replaces the 2017 wage order for domestic workers and overrides minimum wage provisions in the collective agreement between the Agricultural Employers’ Association and the Namibian Farmers’ Union.
The order also makes it clear that employers must pay the full minimum wage in cash and may not deduct the value of in-kind payments such as food, clothing or housing from an employee’s wages.
Only lawful deductions permitted under the Labour Act may be applied.
In calculating the minimum wage, the order excludes allowances and payments such as travel or housing allowances, bonuses, tips, overtime pay, additional pay for work on Sundays or public holidays, night work premiums, and contributions to pension, medical or insurance schemes.
The ministry said the purpose of the wage order is to reduce poverty and inequality by setting fair wage standards and promoting equitable economic opportunities, while progressively working towards the constitutional goal of a living wage.
The Wages Commission is required to review the national minimum wage every two years, in addition to any annual inflationary increases provided for under the Labour Act.
Caption
From this month, the minimum cash wage for farm workers rises from N$10 to N$14 per hour.
- Photo: Contributed
