CFSC pushes for 100% minimum wage hike

The Centre for Social Concern (CFSC) is proposing a 100 percent adjustment to the minimum wage from K50 000 to K100 000 citing high cost of living.

Speaking in an interview yesterday, CfSC economic governance programme officer Bernard Mphepo said going by its  August Basic Needs Basket, Malawians are struggling to access basic food and non-food items as prices keep soaring hence the need to revise the minimum wage.

“When the minimum wage was moved from K35 000 to K50 000, the cost of living was at K164 000 but in our August findings, a family of six now needs K307 000 in a month. If you are to compare the cost of living then and now, you will see that the gap is so wide.” he said. 

According to Mphepo, food inflation has also risen so much so that a household requires about K150 000 for food in a month. 

Collaborating with Mphepo, Malawi Congress of Trade Union (MCTU) president Charles Kumchenga said they expect employers to make a decision on how they intend to meet the needs of their employees. 

“We are already discussing with relevant stakeholders and we are planning a Tripartite Labour Advisory Council meeting where MCTU, government and Employers Consultative Association of Malawi are expected to reach a consensus,” said Kumchenga.

Ecam executive director George Khaki while acknowledging the need to adjust the minimum wage considering the prevailing economic hardships, said such decisions are subject to negotiations.

 He said: “An adjustment to the minimum wage requires a process of negotiation and discussion among all stakeholders involved. There is need to consider the employer’s economic stand to avoid other negative outcomes.”

Effective January 2021, the Ministry of Finance adjusted the minimum monthly wage from K35 000 to K50 000 to address prevalent poor wages for majority of workers in the country.

When the minimum wage was raised last year, the cost of living in urban areas was at about K198 000 per month for an average family of six.