Minimum wage stretching farmers’ pockets

WAGE PLAN… Farmers and workers’ representatives have until the first week of September to propose a way forward on labour challenges facing the agricultural sector. Photo: World Food Programme Namibia

Some communal farmers say they are struggling to pay the national minimum wage because their farms do not generate enough income.

Their concerns come after justice and labour relations minister Wise Immanuel visited farms in the Omaheke region over the weekend.

Immanuel found that some farmers were not complying with labour requirements.

The agricultural minimum wage, which came into effect in January, is currently N$14 per hour and is expected to increase to N$18 per hour in January 2027.

During his visit, Immanuel assessed whether farmers were paying the minimum wage and whether the sector was ready for the N$18 rate.

He also looked at workers’ accommodation, food rations, employment contracts, payslips, Social Security Commission registration, and access to benefits such as pension and medical aid. The ministry found that while some farmers comply with the minimum wage and provide accommodation and food rations, others do not.

He said most accommodation provided to workers is designed for single workers and does not cater for those living with their families.

Immanuel found that many farmworkers do not receive payslips or employment contracts.

“Some workers are registered with the Social Security Commission, while others are not. Pension and medical aid benefits are generally not provided in the sector.”

Farmers told Immanuel that several requirements make compliance difficult. They said workers frequently change jobs, forcing employers to register new employees with the Social Security Commission. They also raised concerns about providing food rations, accommodation, water and electricity on top of wages.

Kavango West farmer Oiva Mahina says the situation is more difficult for communal farmers who have limited access to markets and finance.

“The challenge we have, particularly in the northern communal areas, is even if you want to implement the minimum wage, the farm cannot sustain itself because there is no market,” he says.

Mahina says farmers need reliable markets to sell livestock and generate enough money to pay workers.

He says delayed payments from the Meat Corporation of Namibia have added to the problem.

“Some of the farmers who have already sold in March and April did not receive their money from Meatco for the past three, four or five months. How do you tell that farmer to implement a minimum wage?” he asks.

Mahina says borrowing money to pay workers is not always an option because farmers would have to pay interest while waiting for income from livestock sales. He says only a small number of farms in his area can sustain themselves through agricultural production.

“Where I’m farming, we have about 104 farming units. If you go there and ask how many of those farms can sustain themselves, you’ll get maybe 20 out of 104,” he says.

WAGE PROPOSAL DUE SEPTEMBER

Aminuis farmer Freddy Koujo has a different view, saying the minimum wage is affordable.

“I’m not finding it difficult. It’s doable.

“The N$18, I think some of us have been doing more than that,” he says.

Koujo says farmers should look beyond wages because workers living on farms also need food.

He says he provides workers with basic food items on top of their wages.

“Workers need to get rationing, but we give more than the expected rationing, because you are on the farm to work, so you have to give them more like basic food items,” he says.

Koujo says wages and food rations can push the cost to more than N$2 000 per worker per month. The minimum wage alone may still not be enough for workers to cover their living costs, he says.

“Most of the workers are complaining that even the minimum wage ends up at N$1 500. It’s not enough. So I think the minimum wage is doable, but it’s very, very challenging.”

Immanuel has called for closer cooperation between the government, the Namibia Farmworkers’ Union and farmers’ unions to balance workers’ rights with employment, productivity and the sustainability of farms.

He directed the unions to meet before the end of August to discuss challenges affecting employment and compliance with labour laws in the agricultural sector.

The parties must submit a joint proposal on the way forward during the first week of September.


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