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Unionists welcome proposed 4% minimum wage increment

Moroke Sekoboto

TRADE unions have cautiously welcomed the proposed four percent minimum wage increment for the 2026/2027 financial year, describing it as a negotiated compromise reached with employers in a difficult economic climate.

The proposal is contained in the Labour Act Wages (Notice of Intention to Submit Recommendations for Minimum Wages 2026/27), published this past week by the Wages and Conditions of Employment Advisory Board for public consultation. It outlines an across-the-board increase of about four percent across sectors, with implementation expected to be applied retrospectively from 1 April 2026.

Under the proposal, workers in the garment and textile sector stand to benefit from modest adjustments. General workers with less than 12 months’ service would see their monthly minimum wage rise from M2724 to M2833, while machine operators in the same category would earn M3046, up from M2929. Those with more than a year’s experience would see general workers’ wages increase from M3017 to M3137, and machine operators from M3041 to M3162.

In the construction sector, unskilled labourers are set to earn between M3226 and M3371, while skilled workers with less than 12 months’ experience would see their wages increase from M5078 to M5306. For workers with over a year’s experience, unskilled labour wages would rise from M3552 to M3711, while skilled labourers would move from M5664 to M5919.

The gazetted proposal also maintains provisions such as six weeks of paid maternity leave for employees in the affected sectors.

Speaking to the Sunday Express yesterday, Unite Textile Union (UNITE) General Secretary, Solong Senohe, said unions were satisfied with the outcome as it reflects a consensus between labour and employers.

“We confirm our acceptance of the 4% to 4.5% wage increment, as it aligns with employer-employee agreements. We also acknowledge the minister’s authority to adjust for inflation,” Mr Senohe said.

He, however, cautioned that the proposed wage increases, which fall below the five percent inflation rate announced by Minister of Finance and Development Planning, Dr Retšelisitsoe Matlanyane, in February this year, could erode workers’ purchasing power.

“Inflation is critical when determining wages. If increments are below inflation, workers struggle to afford basic goods and services,” he said, adding that other factors such as economic growth also influence wage negotiations.

Independent Democratic Union of Lesotho (IDUL) Secretary General, May Rathakane, echoed similar sentiments, stressing that the current notice represents recommendations rather than a final determination.

He explained that in terms of the Labour Act 2024, the Minister of Labour and Employment, Tšeliso Mokhosi, is required to publish the recommendations for public comment before issuing the final gazette after 30 days.

“This shows what the Wages Advisory Board has recommended. After delays in convening the board, trade unions and employer organisations engaged and reached an agreement, which was then submitted to the board for consideration,” Mr Rathakane said.

“The board approved our agreement and followed legal requirements, including publication for public input. The minister will make the final decision after considering both the board’s advice and public submissions,” he added.

Mr Rathakane also said the final wage determination could still change depending on feedback received during the consultation period.

“When proposing wages, we consider a range of factors, including the cost of living, employers’ capacity to pay, economic conditions locally and globally, and the needs of workers and their families. We also consult institutions such as the Central Bank of Lesotho and the Bureau of Statistics,” he said.

He added that uncertainties around trade arrangements such as the United States’ Africa Growth and Opportunity Act (AGOA) are also taken into account to avoid discouraging investment.

Economic Freedom Trade Union General Secretary, Tšepang Makakole, said the recommendations reflect a mutual understanding reached between labour and employers.

“The Wages Advisory Board makes recommendations to the minister, who has the authority to gazette. Since we reached an agreement with employers, the proposals have been submitted, but the minister may still introduce adjustments,” Mr Makakole said.

The consultation process now opens the door for public input, which could shape the final wage determination before it is formally gazetted.

 

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