Low-Income Workers Perceptions About a Living Wage in the Tshwane Municipality

Abstract

A living wage is predicted as one of the panaceas to take low-remuneration workers out of the poverty trap, to empower and sustain them to live a dignified life. In the literature it is argued that low-remuneration workers work in precarious jobs globally. Theoretically a living wage is predicted by many factors, but for the purpose of this study the focus was on gender, the economic sector, benefits and employment status. With the exception of economic sector, the other factors and living wage are associated with these United Nation's Sustainable Development Goals: 1 (poverty reduction), 8 (decent wage) and 10 (gender parity). In terms of the former, it is argued that the wage gap is a reality in the workplaces because males still earn higher than females. Research show that low-remuneration workers still earn wages that still traps them in poverty, and their working condition are not conducive. A quantitative cross-sectional survey approach was adopted while convenience sampling was used to select respondents (n=205), since the researcher did not have a sampling frame. A validated questionnaire was used to collect the data. Logistic regression was deemed appropriate to use, since the perception of a living wage was binary. The main finding showed a positive relationship between employment status and a living wage while the variables of benefits and economic sector decreased the likelihood of low-income workers to perceive their remuneration as a living wage by 46% and 40% respectively. Additionally, low-income workers who were employed on a permanent basis, were 3.8 times more likely to perceive their remuneration as a living wage. Findings from the study are key for policy makers and researchers as we benchmark the tipping point between paying reasonable wage and profits. The implication is that organisations should offer employees benefits, like medical aid, education, and training, so that they can have medical aid and improve their skills or competency levels; ensure that non-permanent employees work hours that will allow them to afford basic needs while perception studies should be done prior to the implementation of a living wage that is determined by calculating labour economic variables