NEF concerned over National Minimum Wage rollout

Minister of Labour, Industrial Relations, and Employment Creation Utoni Nujoma

The Namibia Employers’ Federation (NEF) has expressed its views following the Ministry of Labour, Industrial Relations, and Employment Creation’s decision to decline a request to phase in and defer the National Minimum Wage beyond 1 January 2025.

The Ministry maintained that employers had enough time to prepare and criticised the NEF’s proposal as unilateral. However, the NEF has said its recommendations were driven by concerns over potential job losses and economic instability in an already fragile labor market.

NEF President Elia Shikongo stated that the federation’s request was not aimed at opposing fair wages but rather at ensuring a balanced and sustainable implementation.

“The NEF’s request for a phased-in approach was not about opposing fair wages for workers but about ensuring a smooth transition that protects livelihoods as well as economic stability,” Shikongo explained. “Decisions of this magnitude must balance workers’ welfare with economic realities, especially in a country with such a high unemployment rate.”

Shikongo further warned of the risks of implementing the minimum wage without reliable employment data, stating, “Rushed implementation could harm the very workers the policy aims to protect, creating economic instability that will affect us all.”

Despite the Ministry’s position, the NEF has called for a more collaborative approach to ensure that the policy achieves its intended objectives without exacerbating unemployment or straining the economy.