Finance and National Planning Minister Situmbeko Musokotwane
Former Finance and National Planning Minister Situmbeko Musokotwane

ormer Finance Minister Situmbeko Musokotwane has asked government to withdraw the Statutory Instrument on the revised minimum wage and engage in negotiations.

Mr. Musokotwane said the revised minimum wage has the potential to negatively affect foreign investment in the country.

He said one of the factors for foreign investors is a low cost of labour adding that with the imposition of the high wages on employers, potential investors will hold their investment in Zambia on account of an expensive labour market.

The former cabinet minister said if the status quo continues, Zambia’s economic growth will stall as investors will shun the country.

Mr.Musokotwane said the Patriotic Front government has failed to put money in people’s pockets but that they have resorted to imposing wages on employers as a way of empowering people.

Mr. Musokotwane pointed out that the ongoing anger in the labour market which has resulted in protests by employers has been created by the PF government and needs an urgent solution.

[QFM]

[Read 11 times, 1 reads today]

65 COMMENTS

    • minimum wage is for people who are not represented by unions like maids and general workers lm surprised that musokotwane cant understand and appreciate that

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  1. This man is presidential material. Why has he gone quiet? Intimidated over the Pepsi tax holidays and MMD campaign bicycles?

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  2. foolish man you have accepted the salary increment for constitution office bearers .you should drop the increment on payslip.

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  3. The minimum wage is not much in dollars.pf should not bow on this one but revise for individuals. For companies it is peanut.

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  4. Point taken mr musokotwane.What we are forgeting is that this minimum wage affects our brothers and sisters who dont have profesional qualification.The long term solution should be education.Let us have proper education system in place to educate and equip the populace with the neccessary skills and qualification.Surely two universities in 46years of independence and yet we are having lots of garde twelves graduating every year wont take us anywhere.LETS NOT BE SHORT SIGHTED.

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  5. LET INVESTORS STAY AWAY IF THEY CANNOT PAY US A FAIR WAGE. THE MINIMUM WAGE IS K 550,000.00 FOR DOMESTIC WORKERS AND 1,250.000.00 FOR GENERAL WORKERS. WHAT IS THAT COMPARED TO THE HUGE PROFITS SHOPRITE, PICK AND PAY, MINES, GAME STORES ARE TAKING FROM THE COUNTRY. AN INVESTOR COMES TO REAP MONEY NOT TO RENDER SOCIAL SERVICE. ZAMBIANS, LIKE ANY WHERE ELSE IN THE RICH WEST, DESERVES TO BENEFIT FROM THEIR RESOURCES. HOW MUCH WERE YOU RECEIVING MR. MUSOKOTWANE. WHY SHOULD THOSE ON MINIMUM WAGE WITHOUT ANY SOCIAL SECURITY, NO PENSION NOT HOUSE RENT ALLOWANCES BE SUBJECTED TO EVEN LOWER WAGES. THAT IS CRIMINAL

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  6. what happened to the free market economy? thought employers determine what is commensurate with qualifications.

    Some people were running away from school and yet they want to cry the loudest…..Simply go to school and get a good Job. If thats not possibo, look for a well paying employer. Even Degree holders then need a minimum wage as a return on there investment
     

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  7. you foolish man let the maids and garden get what belongs to them what is wrong with you zambian pipo kanshi what a shame in a country were pipo are talking rubbish what is k1.2m and let the rich employee you poor pipo dont employee everywhere is like that even in USA.

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  8. I am very dissappointed with the so called economist, Mr. Musokotwane. This is exactly what PF meant by putting money in people’s pockets. They are improving the wage bill to the lowly paid on top of suspending taxation on employees paid less than K2M kwacha. You dont physically hand out money, the way Musokotwane is insinuating. If an investor cannot afford to pay $100 per month really the country will be better off without them. The few people showering accolades on Mr. Musokotwane’s drivel just sums up how retarded we are. Let us look after each other.

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  9. There is a retreat boss, MMD pipo should be strong and be focused. Rebrand yo party and let us sumthng new, change this government without fear!!!!!!!!!! Anyway u hav a point sumhow but our govnt is too stubborn to accept advice. U Loziz and Tongaz, stop insulting northern tribes if u want to rule this country, sum of us if we retariate for sure u wont like. U decampaign HH and others with yo tribal remarks. Remember, northern tribes hav occupied a bigger part of the country so watch wat u do n say. Think of this Luapula, Northern, Copperbelt, Central, Muchinga, Part of Lusaka while easterners and Northwesterners are good allies. Friendly advise if u think am joking, go ahead with yo tribal comments. We need to sort out a party and certain individuas not ififfya bupuuba ati tribal, kolwes

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  10. The minimum wage statutory instrument should not be withdrawn. The government needs social policies to counter the forces of free market economy which left a multitude in doldrums during the MMD reign! No. 1 & 2, are tribalists riding on anything to discredit the PF government, which now is refered to as Kolwestan by these tribalists. It is common knowledge that most international retail chain stores are reaping huge profits, while having none existent corporate social responsibility policies and paying slavery wages. Asian shop owners have reaped huge profits from their shops while they leave their workers more poorer than before they worked for them. Any company that is not complying with SI 45,46 & 47 is not worth being in this country. Let G&G bakery close, a new bakery will open up.

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  11. . Musokotwane you suck!! “…one of the factors for foreign investors is a low cost of labour adding that with the imposition of the high wages on employers, potential investors will hold their investment in Zambia on account of an expensive labour market.” That is why under your government labourers were subjected to peanut wages because you wanted to appease foreign investors and paid a deaf ear to the cry of your people! That is one of the reasons why your government was ousted through the ballot. Reality is, in society we cannot all be educated!! My old and ailing father never stepped in a classroom but sent me to school in Kaunda’s era when education was free; I became highly educated with multiple university degrees acquired from various varsities worldwide.

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  12. Mr Musokotwane, no wonder you were found with 1000+ bicycles “GREED”! Common sense should tell any serious investor that if he is going to pay the minimum wage then he should demand maximum productivity from the worker.Why do we fail to look at things beyond capitalist theories. Investors this, investors that, no wonder for the past 20 years local business is un developed while our so called investors have made millions without coming with anything!

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  13. Yaba as if there was no minimum wage under Musokotwane? Mwanawasa’s MMD brought 268,000 minimum wage, punishable for those who did not comply! All PF has done is increase the amount! What do these people want, Zambia to turn into Congo or Somalia with no laws?

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  14. It’s $100 per month! If you can’t afford you are really not a serious investor to be honest

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  15. The opposition is not happy to see pro poor policies being implemented. In my own view, the PF just needs to take care of the poor and they can win elections for the next 20 years. This is because the educated ignored the poor when they were in government for 20 years. Just imagine, on a given month you paid 600pin PAYE on your 2.3m Gross salary; the following month, your government assures you that 2m will be free; what remains will be taxed at 25%; so you go home with 2.2m zmk. Would you insult the government that has done that for you in their first six months of ruling? Certainly not. The next phase of projects on districts will emply many people as operatives; and that guarantees them a win in 2016. PF is full of strategists called “Kaponyas” or Kolwestans. Chikubaabe!!

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  16. Hon Musokotwane is already living happily but you want our brothers and sisters in Zambia to be receiving slavery wage.Why? that minimum wage is little in dollars or over world known currencies.

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  17. PF can retract with ease. They have nothing to loose or be ashamed of; flip flopping has been a permanent feature of their governance or is it “code of conduct”? They have done it without batting an eyelid many times over, over the last ten months!!

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  18. MUSOKOTWANE GO AND SLEEP, ENOUGH IS ENOUGH YOU FAIL US WHY DO SPEAK LIKE THAT.JUST CONCENTRATE ON YOU BICYCLE CASE. GREEDY CHAPS. GO TO HELL

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  19. is a shop owner in samfya,mwinilunga,shangombo going to afford the minimum wage PF think employers are not only in urban areas

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  20. Kindly withdraw minimum wage
    And call for negotiations with other stakeholders please.
    Hon. Shamenda do not feel shy.We need peace in the country okay.
    Just create more jobs for people.

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  21. It is Situmbeko ‘Fatso’ Musokotwane’s opinion that $84 per month is just too much for a domestic worker.

    Think about it.

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  22. I beg to differ with Dr. Musokotwane on this one. Lets not use FDI as the reason to continue exploiting the Zambian people. I want to remind the Dr. on one thing, FDI is not a derevative of low cost of production but it has a whole lot of factors involved. FDI to Zambia has continued even under questionable leadership mainly due to two major factors namely, its geographical location and secondly its political stability (Peaceful). I would beg to differ with any economist whose premise only focusses on the narrow perspective of low cost of production. The argument on minimum wage should not be entertained as it is largely being promoted by selfish investors whose main desire is super profit. Do not forget that, Dr. Musokotwane is a business man to. Minimum wage should stay.

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  23. Musokotwane is a shame…how does he expect Zambians to survice. We are always thinking of investors who are making huge sums of profit buying planes, land and paying themselves huge salaries, yet the employees are only asking for enough to buy cooking oil or mealie meal…what nonesense these politicians make out of innocent people.

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  24. Musokotwane is a shame…how does he expect Zambians to survice. We are always thinking of investors who are making huge sums of profit buying planes, land and paying themselves huge salaries, yet the employees are only asking for enough to buy cooking oil or mealie meal…what nonesense these politicians make out of innocent people.

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  25. If we withdraw minimum wage then lets introduce equal pay for equal work, to foreigners and local alike.

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  34. Mr Musokotwane and his failed policies, no wonder you failed to create employment in the country. An economist who ignores high unemployment and claims growth should not be taken serious. What’s K500000 per month? It is nothing compared to £5 per hour as minimum wage. Zambia is filthy because we fail to appreciate people  who do dirty jobs. If cabbage collectors are given good salaries they would take their jobs seriously and the country image would improve. 

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  41. Mhm,must say am impressed. How shallow can we be? Does pf know what a budget is? What bout subsidy?worse planning. Looks like they act on impulse! What is the next bombshell? Actions have consequences ka. Long term effects! Remember the free ubunga in ba kaundas time?won votes but where did it leave us?

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  43. It is about narrowing the gap between the rich and the poor. At least a living wage. The distortions can be too much. But ba Musokotwane, of the factors of production, you just choose to cheapen the labour cost in order to attract FDI. What is economics about? Is it not to please people? Is economics just about pleasing those who have capital at the expense of a worker? There must be a minimum standard. A living wage at least.

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  47. Minimum wage SI should only be withdrawn after your benefits are withdrawn Dr Musokotwane until then it stays! Let’s see if you can live on less than ZMK 500pin pcm greedy man!

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  48. Musokotwane wants Zambian worker to be paid peanuts? No wonder MMD lost !!. They were stealing but not paying workers well. VIVA PF!!!

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  52. at the new minimum wage labor costs are still the lowest in the world $250 a month for general workers?in the united states it is close to $1,500.00 per month although admittedly the cost of living is probably higher so the minimum wage workers are the same hand to mouth situation.workers  need protection from the ravages of capitalism.If sata is not going to look after them then who is?the captains of industry and commerce  are ruthless.Darwinism runs rife in their version of society.

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  53. please mr musokotwane…..before you convince us 2 drop the minimum wage…..can you pledge to live on K1,250,000.00 YOURSELF for at list 12 months…then we can talk

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  55. Dr Situmbeko or whatever you call your self. Much as l would appreciate your economic analysis on this subject matter,minimum wage,l still feel your analysis lack consideration for what your bros and sister are going through.l hope someone did just give you anything in a bid that you should help them fight for free labour! Sure how fair is it for this guy who is working for shoprite,manda hill, and is coming from avondale where his go-come fare costs him k8000 per day but only to receive k270 000 after 30 days.what makes this different from slavery?

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