Sectoral minimum wage will be introduced to boost income for individuals under informal employment. The development is currently under consideration by the Malawi Congress of Trade Unions (MCTU) which will engage Government in the implementation of the development.
MCTU secretary general Denis Kalekeni said that setting minimum wage depending on the sectors’ profitability could help uplift living standards for a lot of workers. “Cost of living has never matched with the current minimum wage, particularly those in the informal employment like labourers and domestic workers. While this could in a way increase income disparity for minimum wage earners, we feel that introducing sectoral wage now will help workers who are working in profitable sectors but are being denied more earnings because of the set minimum wage which carters across all sectors,” he said.
Kalekeni stressed that at currently, minimum wage earners can barely afford basic necessities, as K25000 is not enough to cater for one’s need, considering the new prices that are on the market.