Boost SA’s Minimum Wage to $500: A Policy to Reduce Xenophobia

South Africa’s current median wage of $350 leaves many workers outside the tax net and feeds resentment toward immigrant labor. Raising it to $500 would mean every worker—citizen or migrant—contributes to public revenues, turning perceived liabilities into assets. Under this plan, all self-employed individuals must pay themselves the taxable minimum wage and settle the appropriate taxes. Employers would also be required to pay every staff member at least the taxable minimum, ensuring the government benefits from every employment contract. Implementing this change quickly could defuse rising tensions and prevent retaliatory economic measures in Nigeria. By formalizing the economy, South Africa would safeguard its workforce, foster social cohesion, and strengthen bilateral ties.

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