MINIMUM WAGE VIOLATION IN SOUTH AFRICA
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Minimum wage legislation is central in South African policy discourse, with both strong
support and strong opposition. The validity of either position depends, however, on the
effectiveness of minimum wage enforcement. Using detailed matching of occupational,
sectoral and locational codes in the 2007 Labour Force Survey to the gazetted minimum
wages, this paper presents, we believe for the first time, estimates of minimum wage
violation in South Africa. Our results give considerable cause for concern. Minimum
wage violation is South Africa is disturbingly high. We find that 45% of covered
workers get paid wages below the legislated minimum, whilst the average depth of
shortfall is 36% of the minimum wage. Around this average, violation is most prevalent
in the Security, Forestry and Farming Sectors. We hope that the quantifications in this
paper will provide a more solid basis for discussion of minimum wage levels and their
enforcement in South Africa.