Government has finalised the minimum wage review process with Minister of Labour Peter Dimba saying they target to have new wages gazetted by tomorrow, May 1 on International Labour Day.
Workers should be expecting a minimum wage increase of between 40 and 100 percent as government holds the final decision on a stalemate between employees and employers.
Dimba confirmed in a written response yesterday that they have finalised the review process but refused to divulge the new figures.
He said: “We have finalised the process and hope to gazette the new minimum wages this week. It would be unethical of me to leak the figures before the gazetting.”
The minister said a Tripartite Labour Advisory Council (TLAC) was held last week in Lilongwe but Malawi Congress of Trade Unions (MCTU) has described the meeting as mere consultations.
He said: “We are done and May 1 is our target but you know it involves paperwork. The two sides came and gave their positions. We cannot go ahead and revise the figures without the TLAC.”
Both MCTU and Employers Consultative Association of Malawi (Ecam) said in separate interviews yesterday that they failed to agree on a new minimum wage during the meeting.
MCTU president Charles Kumchenga said they still maintain a 100 percent minimum wage increase from K90 000 to K180 000.
“We have not yet agreed. Our proposal was 100 percent and that was all. Ecam proposed a figure less than 100 percent and that is where we disagreed.
“The discussions are still underway. The ministry now has to decide but the minister cannot announce before telling us the final stand,” he said.
However, Kumchenga said the consultations were not held as a full TLAC as they expect government to convene the same.
Ecam executive director George Khaki said they proposed a 40 percent increase across the board, stating that the minister is expected to make a final decision.
He observed the law does not state that the decision for a minimum wage review should be referred to TLAC, but rather that the minister may revise the wages as they see fit.
Khaki further justified that legal provisions make reference to available economic data before deciding on a review.
“On average, inflation figures are at 30 percent. We thought if we add 10 percent we are going to cushion workers. With forex scarcity, the industry is not performing.
“Production and profits have diminished. The industry cannot import raw materials. With high inflation, buyers are not buying as they should,” he said.
A recent survey showed that pressure on the cost of living has eased, increasing by 2.6 percent to K503 876 for a family of six in February due to declining maize prices, potentially alleviating financial burdens for consumers.
This, according to the Centre for Social Concern (CfSC) recent cost of living analysis, contrasts with the preceding period from December 2023 to January 2024 where a substantial surge of 7.8 percent to K491 037 was observed.
During the month under review, Lilongwe experienced a significant downturn of 16.4 percent, Zomba maintained stability, Blantyre witnessed a modest decline of 3.8 percent, Mzuzu recorded a marginal increase of 2.4 percent while Mangochi experienced a notable decrease of 14.3 percent.
