Hi There
Could you please assist on below short essay...
DOMESTIC workers will no longer be subjected to meagre salariesas the government has adjusted the minimum wage for domesticworkers, with effect from December last year.
The announcement was made by the Department of Labour MinisterMildred Oliphant and it coincided with the signing into law of theNational Minimum Wage Bill by President Cyril Ramaphosa.
According to the Department of Labour’s new rates, domesticworkers working in Area A (bigger metropolitan areas) who work morethan 27 ordinary hours per week, must be paid a minimum of R13,69per hour.
Workers who work fewer than 27 hours per week, must be paid aminimum of R16,03 per hour.
This will mean that a domestic worker who works 45 hours perweek will now earn a minimum of R2 669,24 a month.
Gardeners, drivers or people who look after children, the aged,sick, frail or disabled in a private household, all qualify asdomestic workers.
With the aid of a diagram, discuss the welfare effect of thisnew legislation if the new minimum wage is (1) below theequilibrium wage and (2) above the equilibrium wage rate withlabour hours as your quantity variable.
