By law all employers are expected to create a framework for each enterprise unit based on seven occupational levels (see EEA9).   But there should also be three ‘internal’ grades within each level.  So it is possible for employees who have just entered a level to be paid up to 100% less than an employee in the same level, but who contributes more value because of greater knowledge and experience.   Employers who have a proper framework are then able to justify the difference based on value contributed, the so-called value exchange.   So ‘equal’ should be interpreted as commensurate and not exactly equal.   The secret with the so-called minimum wage is to regard it as the upper level of the first occupation level.   This would allow employers to create entry-level jobs at a rate that is up to 100% lower than the actual ‘minimum wage’.

Some minimum salaries are much higher than you think: Mike Schüssler in Moneyweb Today on 24 August 2016.

See also: Entry-level and minimum wages: Need to differentiate

Excerpts from Mike Schüssler’s important article

The recent appointment of a seven-member panel of experts by Deputy President Cyril Ramaphosa, has the nation debating the value and relevance of a proposed minimum wage for all workers.  In this debate, it would be helpful to consider sectors that are already paying their workers well above minimum wage.

More than eight million formal sector workers in South Africa are already protected by some form of ministerial sectoral determination, union agreement or bargaining council agreement.

If one assumes that the informal sector and self-employed workers are not going to be influenced by any determination on minimum wages, then it is clear that about 80% or more of all employees are already covered.

. . . . .

To put the higher-end skilled minimum wage into perspective: the vehicle manufacturing industry’s salary is 60% more than a teacher with a master’s degree and four years’ experience!

In summary, it is clear that most formal sector minimum wages are already above the R3 000 a month mark, but some entry-level salaries, including benefits, are already about five times what one would expect the minimum wage to be.  This is especially prevalent in the vehicle manufacturing and gold mining sectors.

The vehicle manufacturing and mining sectors seem to have minimum wages which, even at their lowest earners’ level, would escalate these employees into the top 20% of all South African salary earners.  Higher skilled minimum wages in many sub-sectors show that some minimum wages would place employees in the top 5% of salaries.  To get into the top 5% one needs a salary of R24 000 a month.  Skilled artisans in the vehicle manufacturing sector, for example, earn well over R33 000 with benefits.

Many minimum wages in South Africa – in both the public and private sectors – are already many times that of the typical wage earner who receives an estimated R3 200 a month, although this minimum figure may be slightly higher as not all respondents are truthful about their income.  It nonetheless indicates that many sectors have minimum wages that are many times that of the proposed minimum wage – whatever that is likely to be.