Economic
“Minister of labour, Thulas Nxesi, has gazetted South Africa’s new minimum wage which will take effect from 1
March 2020.
The gazette states that the new national minimum wage is R20.76 – an increase of 3.8%”.
Adapted from: https://businesstech.co.za/news/government/374920/6-planned-laws-that-government-has-
just-announced-for-south-africa/
Accessed: 21/02/2020
Provide a discussion on the welfare effect of the above, that illustrates the case for when the above results in
unemployment in the market for domestic workers as well as a case for when the above has no effect on the
market for domestic workers. Use a diagram to support your discussion.V

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