South Africa's Minimum Wage Increase Surpasses Expectations

South Africa has announced a significant increase in the national minimum wage, exceeding the expectations of businesses and analysts. According to Jin10, the government stated on Tuesday that starting next month, the minimum hourly wage will rise by 5% to 30.23 rand (1.89 USD). This adjustment surpasses the anticipated average wage increase of 4.7% for 2026, as projected by analysts, businesses, and unions in a survey conducted by the Bureau of Economic Research on December 12 last year. Data from Statistics South Africa revealed that the Consumer Price Index (CPI) rose by 3.6% year-on-year in December, while the average inflation rate for 2025 had decreased to 3.2%. Matthew Parks, a parliamentary coordinator, stated that the additional compensation "will inject much-needed stimulus into the economy, drive growth, and sustain and create jobs."