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Minimum Wage Deliberations Deadlock

Deliberations around minimum wage in Nedlac which was expected to end next month has resulted in deadlock. Concerns have been raised to whether the deadline around minimum wage will be achievable with a differing views on minimum wage.

Nedlac wants a minimum wage of R5000 where employers want minimum wage to be aligned to the lowest wage sectorial determination, that of domestic workers.

Issues around wage inequalities and slow implementation of minimum wage by the Department of Labour will draw out the final decision and implementation of minimum wage.

Unions as well as researchers and academics believe the minimum wage will not lead to job losses, but will boost consumption-led economic growth and help lift the southern Africa region through higher remittances sent home by migrants working in the country.

Please click button below to read the article published in the International Journal of Human Resources Management which covers a case study on minimum wage regulations in China and the effect on their export capability and economic rise.

 

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Update on Retirement Reform

Mentje Larney presented to Parliament’s Standing Committee on Finance, on Tuesday the 2nd of November 2015, dealing with pension fund reforms. The presentation was of the South African Reward Association (SARA) and was in response to the Committee’s call for public comment on the Minister’s proposal to amend the Taxation Laws Amendment Bill (TLAB) that was tabled on 27 October 2015. The proposal from the Minister included the annuitisation requirement for provident funds effective 1 March 2016. However, it should be noted that the provisions dealing with the tax deduction of 27.5% of taxable income (up to a maximum amount of R350 000), is in the tabled bill for implementation effective 1 March 2016 and no comment was invited on this item.

A number of private stakeholders provided oral and written submissions on the proposal for the Committee’s consideration. The most significant of these were probably COSATU who are still very much opposed to the implementation of TLAB without workers’ engagement and consent. National Treasury had an opportunity to respond and they are pushing for complete implementation by next year. We expected the Finance Committee to have finalised their decision by now, but we are still awaiting further correspondence in this regard. We will keep our clients updated once the final Taxation Laws Amendment Bill has been published.

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Africorp Solutions Presents at IPM – 2015 – Designing Reward and Benefit Systems for the Future

The IPM Convention, is a 3-day convention which delivers the latest thinking and solutions in the management and development of people. Hosted at Sun City, North West Province, all Human Resources Professionals, business leaders, suppliers and key influencers come together from private and public sectors to explore topical issues and to seek solutions to business challenges.

As part of this wonderful event, Africorp Solutions and Advisory in its first year in participating at the convention, presented on remuneration planning and structuring, delivered by Jerry Botha, Director of Africorp. We would like to thank all the delegates whom attended our presentation and hope that it was of notable value to you.

You may contact Jerry Botha (0828896118) should you have questions around the presentation content or would like a demonstration of the tools and calculators used during the presentation.