Introduction
Should South Africa adopt a minimum wage, there will be a negative influence on employment especially to unskilled workers. According to Ben Stanwix, development policy researcher at the University of Cape Town, the minimum wage policy in post-1994 South Africa has been pursued with the aim of ensuring that workers in low paid and vulnerable occupations are guaranteed a basic subsistence income. The idea was to increase the wage floor so as to lift a portion of the working poor from extreme poverty and facilitate the redistribution of income extremely unequal society.
Background
The first national minimum wage law was enacted by the government of New Zealand in 1984, followed by Australia in 1986 and United Kingdom in 1909. The state sets minimum wages by means of two mechanisms. In one of these, used in 2002 to 2003, sectoral minimum wages are recommended by the Employment Conditions Commission (ECC) and gazette by the Minister of Labour in terms of the Basic Conditions of Employment Act. (Prior to the 2000s, minimum wages were set by the wages Board. The mechanism serves to set minimum wages in where workers are not organized into strong trade unions.

Benefits of a minimum wages
Reduce poverty
When we adopt the minimum wage it can increases the wages of the lowest paid. These workers will have increased income and will reduce relative poverty. This can increase even tax because the more you earn the more you taxed.
Increase productivity
The efficient wage