Windhoek: Farmers in the Omaheke Region are concerned about the government's recently updated National Minimum Wage Bill, saying it has placed significant strain on the farming sector, particularly in rural areas. Speaking during an engagement with President Netumbo Nandi-Ndaitwah last week, a farming spokesperson, Karin Metzger, highlighted the unintended consequences of the wage increase, which she said might undermine the goals the policy seeks to achieve.

According to Namibia Press Agency, Metzger noted that while the intention behind the National Minimum Wage Bill is commendable, the reality for farmers is far from ideal. The wage hikes are creating financial pressure across the farming industry, whether it's communal, emerging, or commercial farms. As farmers strive to ensure food security and job creation, the costs associated with this policy are becoming unsustainable.

Metzger suggested that farmers should be allowed to deduct certain in-kind services such as accommodation and food, adding that they form part of the cost to company. She believes this adjustment could ease financial pressure while still ensuring fair compensation for workers.

The National Minimum Wage Bill, which came into effect in January 2025, mandates that all workers in Namibia receive a minimum wage of N.dollars 18 per hour. Domestic workers are to receive N.dollars 12 per hour, while agricultural workers are to receive N.dollars 10 per hour effective 01 January 2025; N.dollars 14 per hour effective 01 January 2026, and N.dollars 18 per hour, effective 01 January 2027.

Metzger also expressed concerns about young people, particularly those who left school early without formal qualifications, struggling to find work on farms. Many of these individuals, she argued, are unable to find opportunities in other sectors due to their lack of skills and qualifications. The wage increases might sound good in theory, but in practice, they are preventing the very people who need these jobs the most from finding work.

The farmer emphasised that the rising costs have also made farmers hesitant to diversify into more labour-intensive agricultural activities that could generate additional employment opportunities. This, she warned, could stunt the growth of Namibia's rural economy, leaving many communities dependent on a shrinking number of available jobs.