Current Minimum Wage low for Informal Sector

The Minimum Wage for the Informal Sector in Zambia - read more on Mywage Zambia, Minimum Wage information on Mywage Zambia, Minimum Wage, Minimum Wage Zambia, Zambia Minimum Wage, Salary Check, Living Condition, Inflation Zambia, Pay As You Earn Zambia, ZCTU, Zambia Congress of Trade Union Minimum Wage, Collective Bargaining Zambia, My Wage Zambia, Salary Survey Zambia

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By Sanday Chongo Kabange

About a quarter of Zambia’s total workforce are employed in the informal sector. According to the Minimum Wages and Conditions of Employment (General) Order, 1995, employees in the informal sector include watchmen (guards), farm labourers, cleaners, handymen, domestic workers and office orderlies. Despite being in informal employment, these workers contribute to Zambia’s economic growth and contribute about 70% to the country’s GDP.

Wage Breakdown

Zambian legislation on Minimum Wage states: "The Minimum Wage in the formal sector is 268,000 kwacha per month, based on the legal maximum work week of 48 hours”.

However, in the informal sector, some workers get as low as K 60,000 per month. To this effect, the Current Minimum Wage is far below the legally accepted benchmark of K268,000. Paragraph 4 of Chapter 276 of the Minimum Wages and Conditions of Employment Act outlines the following:

The Minimum Wages rate excluding any amount paid in lieu of rations, shall be as follows:
Category I	For a person engaged as: General worker (not elsewhere specified) Cleaner Handyman Office orderly Watchman (guard)	K245 per hour
Category II	For an employee engaged as: Driver	K62,000 per month
Category III	For an employee engaged as: Clerk Receptionist (telephonist or switchboard operator)	K65,000 per month
Category IV	For an employee engaged as: Typist	K80,000 per month
The monthly rate of wages (irrespective of the numbers of hours worked excluding any amount paid in lieu of ration) to be paid to a watchman or a guard shall be two hundred and eight times the hourly rate specified in Category I.

Minimum Wage Act

The Minimum Wages and Conditions of Employment Act provides for fixation and enforcement of Minimum Wages in respect of schedule employment to prevent overworking or exploitation of labour through payment of low wages. The objective of the Act is to ensure a minimum subsistence wage for workers. The Act requires the government to fix minimum rates of wages in respect of employment specified in the schedule and to review and revise the minimum rates of wages at intervals.