- Background: A huge remuneration gap exists in South Africa where the legislated minimum wage is currently R21.69 (US$1.37) an hour. Woolworths recognizes the critical need to close the gap in the context of the socio-economic environment. The company's base pay last year was already 47% higher than the minimum wage rate and 13% above that of the retail sector.
- Description: This month, Woolworths has committed to investing an extra R120mn (US$8mn) in wages over the next three years, and has approved a 4.5% increase for South African store staff. The increase will adjust Woolworth's hourly base pay and give staff a 23.5% increase from the current base pay.
- Impact: According to the company, "This investment will bring a meaningful benefit to the more than 20,000 store staff and go a long way towards our ‘just wage’ aspirations."
Photo courtesy of Woolworths