Centre for Social Concern (CfSC) and Malawi Congress of Trade Unions (MCTU) have asked Treasury to consider increasing the minimum wage to incentivise and cushion workers from the rising cost of living.
In its input to the 2022/23 National Budget proposal, CfSC argues that Treasury’s move to increase the minimum wage to K50 000 in the 2020/21 financial year, which was effected in January 2021, did not help to improve the living standards of low-income earners.
In an interview on Tuesday, CfSC economic governance officer Benard Mphepo observed that the cost of living is increasing.
impact on workers such as these
He said as at October 2021, an average Malawian needed K221 000 a month to survive against the minimum wage of K50 000 .
“The low minimum wage is not necessarily only due to performance of our economy, but also exploitive policies.
“CfSC believes that an increase in minimum wage will support the majority of Malawians to move out of poverty. It is, therefore, imperative to formulate a budget that will also cushion or embrace poor people in Malawi who form the majority of the population.”
Mphepo said Treasury should consider putting deliberate policies to cushion low-income earners who are struggling to survive because of the impact of the pandemic.
MCTU general secretary Madalitso Njolomole said majority of workers are facing difficult economic challenges to survive, as such, they need consideration.
“We are urging the government to put deliberate policies that will cushion workers from income and employment during these tough times,” he said.
Njolomole said MCTU hopes to see government coming up with a clear job creation plan in the forthcoming financial year.
As part of their input to the 2022/23 National Budget, Malawi Confederation Chambers of Commerce and Industry (MCCCI) and Institute of Chartered Accountants in Malawi (Icam) earlier asked Treasury to review some taxes and tax policies to improve revenues and ensure business survival and growth.
During the pre-budget consultation meeting in Blantyre in December, the two bodies urged Treasury to ensure that the budget stimulates the domestic economy by creating an enabling environment for businesses to thrive and ably pay taxes.
Icam vice-president Moffatt Ngalande said while government has a big challenge in creating an efficient tax system, he said Icam wants to see government stimulating the economy by providing incentives to local players and ensure that they are able to be established and continue to tax.
MCCCI president James Kazembe said the chamber is keen to see government setup a foundation for medium to long-term gains, including making transports costs cheaper and revising some taxes to esdure that businesses thrive.
Commenting on the contributions, Minister of Finance Felix Mlusu said they have taken note of the proposals and will take on board some.
He said: “We will look at the views and ideas that will give us quick wins in our implementation.
“We will also look at the views and ideas which enable us to pluck the low hanging fruits and those that set a foundation to anchor our budget in line with the Malawi 2063.”
Parliament is expected to start meeting from February 3 for the budget meeting.
This year’s financial year starts from April 1 and end on March 31 2023.
This a change from the previous financial years that used to run from July to June
