Deputy President Cyril Ramaphosa proposed a new national minimum wage (NMW) of R3 500 per month (R20 per hour) at the National Economic Development and Labour Council (NEDLAC) office in Johannesburg on Sunday.

The NMW is to be phased in over the next two to three years, Ramaphosa said.

The report recommended that wages in the domestic work sector should be set at 75% of the minimum wage level and at 90% in the agricultural sector, while some businesses could also apply for exceptions.

The proposed monthly minimum wage elicited mixed reactions from trade unions and political parties.

The ANC welcomed the report and said recommendations were “sound, credible and supported by clear evidence”.

“Now that a quantum has been proposed, NEDLAC constituencies need to have an opportunity to engage,” Zizi Kodwa, ANC spokesman said.

Ramaphosa also highlighted the progress made with strike balloting, which he said could help to “prevent long strikes from having a negative impact on the economy, on workers and businesses”.

The ANC said it was pleased NEDLAC was about to finalise a package to reduce prolonged and violent strikes.

The ANC Youth League also welcomed the idea to implement a national minimum wage, but rejected the proposed amount of R3,500.

The party suggested an amount of R5,000 and called for a study on living conditions of general and domestic workers and security guards.

The EFF however rejected the proposed minimum wage and said that it favoured businesses at the expense of workers. It added that it was against the exclusion of domestic workers and farm workers.

The EFF had recently tabled a minimum wage of R4500 a month in parliament.

“Any minimum wage that is below R4500 will not make any difference to the lives of workers or the resolution of inequality in wages and living conditions,” EFF spokesman Mbuyiseni Ndlozi said.

The Food and Allied Workers Union (FAWU) welcomed the agreement, but disagreed on the amount, as it proposed a minimum wage of R5700 a month.

FAWU said it was “concerned that the proposed figure of R3500 seemed to be ignorant or indifferent to this country as the most unequal society on Earth in terms of income distribution,” general secretary Katishi Masemola said.

The national minimum wage recommendations still need to be affirmed by legislation.