Construction minimum wages increase by 2.6% from November 2022
The second year of the 2021 Collective Agreement between the construction sector and relevant union, kicks in next week Tuesday at the beginning of November. This pertains to agreed minimum wages for a host of defined job functions in the sector.
The first wages based on the increased minimum wages are due at the end of November.
Agreed minimum wages, as defined by function and by category, have been increased by 2.6%, as gazetted in Government Gazette 7675 in November of last year. The minimum wage increase applies to all employers in construction, not only to members of the Construction Industries Federation of Namibia (CIF).
Chief Executive of the CIF, Bärbel Kirchner, said: “We encourage all employers in our sector to adhere to the requirements as stipulated in the Collective Agreement, published in Government Gazette No 7675. Of course, the CIF understands that our industry is really struggling – we see less private and public investment, global supply chain problems, fluctuating fuel prices, ongoing unjustifiable competition with foreign contractors, and not the least, there are also issues about late payment. But we have to honour our commitment as per the agreement. Our employees are equally affected by high inflationary pressures and rely on our support. Employers and employees really need to pull together, where our contractors will commit themselves to paying the 2.6% increase of minimum wage payable and where construction workers equally commit themselves to high productivity levels. At the same time, we need to see that our government also focuses on a better and more conducive environment for our industry.”
The current minimum wage payable in the construction sector is still N$17.38 per hour, as per Government Gazette, No. 7675. This will increase to N$17.84 per hour when wages are due to be paid at the end of November 2022.
Other benefits for employees in the sector remain the same until a new Collective Agreement has been negotiated. These benefits include a service allowance equal to 150 hours of normal wage, which is to be paid as part of the December remuneration before the commencement of annual leave during December. It is also mandatory that all employees, for whom minimum wages payable are prescribed as per the agreement, are registered by the employer with the Namibian Building Workers Pension Fund (NBWPF). Alternatively, employers can offer pension and retirement benefits that provide for the same, or better, as the NBWPF.
Kirchner pointed out that the increase in agreed minimum wages is not a general increase of 2.6%. It only applies to the categories as listed in the Collective Agreement and as gazetted.
A copy of Government Gazette 7675 that captures the Collective Agreement, can be read HERE.