The South African government at the municipal, provincial, and national levels can change the state of the nation for the better by supporting employers to pay living wages.

A living wage can turn the tide of a country’s fortunes, bring peace and stability, promote equality and stimulate economic growth. Many employers believe they cannot afford to pay the lowest-paid employees decently; it is counter-intuitive to them that, in most cases, the commitment to lifting wages at the lowest level increases financial performance.

As humans, our decisions are often driven more by anxiety than facts. The government could counter this fear through incentives for those who do pay living wages.

What is a living wage?

A living wage is defined as a sufficient income for an individual and their family to afford the basic necessities of life, have something over for savings, and be prepared for life’s emergencies.

This is in stark contrast to the current national minimum wage, which is legislated but does not lift poverty. A living wage is more than an amount, it is an approach. Employers should adopt living wages voluntarily, as it is a responsible business practice that promotes an organization’s financial sustainability and is morally right at the same time. While it is about affording dignity through fair wages, it also needs to be accompanied by treating employees decently in all aspects of their work lives.

An instrument of peace

The 1919 Treaty of Versailles, Part XIII, Labour, recognised that universal peace could only be established on the basis of social justice. However, harsh labour conditions that deprive large groups of people of the essentials for their well-being could result in civil unrest and threaten this peace.

Among other solutions, the treaty emphasised “the provision of an adequate living wage” as a means to reduce that risk. It is a remedy South Africa needs now.

Driven by government

While the government need not legislate or enforce employer adoption, it must recognise the living wage as an essential instrument in the preservation of human dignity, social cohesion, and civil stability.

It can also play a critical role in promoting and encouraging this initiative through campaigning, support programs, and incentives.

The Living Wage South Africa Network has come up with the following ways in which the government could support employers to pay living wages:

• As South Africa’s single largest employer, lead by example by becoming its foremost living wage employer at national, provincial, and municipal levels.
• Leverage the state’s immense purchasing power by preferring contractors who pay living wages, thereby incentivizing employers to do so.
• Encourage employers to embrace a living wage approach through payroll subsidies, incentive schemes, or tax breaks.
• Give special attention to small businesses whose slim profits may dissuade them from offering a living wage by providing extended subsidies, allowances, and tax incentives.
• Identify and implement sector-specific initiatives that help special-case employers transition more easily to a living wage scheme.
• Invest in living wage employers through skills development programmes that enhance their productivity, efficiencies, and competitiveness.
• Reward organisations that work with living wage employers throughout their supply chain, thereby promoting peer-based auditing.
• Partner with organisations that gather, analyze, and disseminate national data that helps employers set a fair living wage in their companies, industries, or sectors.

Government actions like these not only alleviate companies’ worry that they cannot afford living wages but also a self-balancing system that preserves competition across the market.

True peace can only exist when all South Africans are lifted out of poverty, and the government can make this happen by supporting and assisting employers eager to adopt the living wage concept.

Living wage advocacy

As a living wage ambassador, the Living Wage South Africa Network, which comprises about 80 individual, public, non-profit, and local and international corporate organizations, is the primary source of information and expertise on this subject in South Africa.

We invite the government, employers, and any other interested parties to contact us for more insights about its benefits or to partner with us on our journey towards a nationwide living wage implementation.

Ines Meyer is the chairperson of the Living Wage South Africa Network and a professor at the University of Cape Town.