Experts call for tough penalties for employers breaking minimum wage rules
VERIPUAMI KANGUMINE
Labour experts are calling for tougher penalties and stronger enforcement of Namibia’s minimum wage laws, warning that fear of job losses is keeping workers silent even as allegations of non-compliance persist in parts of the retail sector.
The calls come amid allegations by employees of Namibian-Bangladeshi-owned retail store Al-Amin that they are still being paid below the national minimum wage despite government regulations that took effect last year.
The allegations have also renewed concerns about the ability of workers to report labour violations in an environment marked by high unemployment and a growing backlog of labour disputes.
Last year, the Ministry of Labour, Industrial Relations and Employment Creation increased the National Minimum Wage to N$18 per hour for all employees and introduced a three-year plan to gradually increase minimum wages for security guards, domestic workers and agricultural labourers.
Under the new wage structure, employees earning below N$18 per hour were expected to receive the first adjustment in January 2025.
However, employees at Al-Amin allege that they continue to earn well below the prescribed minimum wage and fear reporting the matter to authorities because they could lose their jobs.
Their allegations come at a time when the Office of the Labour Commissioner has already acknowledged a significant case backlog. Earlier this year, the office announced that more than 950 labour dispute cases remain unresolved, with some stretching beyond three years due to frequent postponements.
Labour experts say such delays only deepen workers’ reluctance to come forward.
UNDERPAID AND AFRAID
Ndapewa Phillemon, an employee of Al-Amin who asked Namibia Business Review to use a pseudonym due to fears of being fired, says she earns N$ 3 200 per month despite working seven days a week.
Phillemon says she is left with nothing after she pays her rent and sends money back home to her parents in the north, who are taking care of her children.
“I barely have any money left after I pay my rent for N$ 1 800 and send money back home to pay parents who are taking care of my children,” she said.
Phillemon says that she has resorted to walking to work and sells perfume as a side hustle to buy groceries.
The retail employee who has been working at Al-Amin for over six years says that her employer allegedly pays them below the table and refused to compensate them double for working done on Sundays and public holidays.
“I want the situation to change but we are afraid of the consequences of reporting him, even talking to you will cost us our jobs,” she said.
Florence Doeseb, another employee who wishes to speak under a pseudonym, said that their employer allegedly threatens to fire them for asking for a raise.
“If I ask for a salary increase he says he will fire me. Everything is very expensive but my salary is still the same. We don’t even get payslips from our boss to even proof that we are employed,” she said.
Doeseb who has been working for the retailer for four years says they work for nine hours a day without lunch breaks.
A former employee of Al-Amin who wished not to be identified said she quit her job after discovering that her employer had not made contributions to the Social Security Commission when she applied for maternity benefits following the birth of her child.
“He is paying us pennies and lies about paying Social Security. I went there after I gave birth and I was told my employer never paid anything for us,” she said.
Al-Amin owner Bul Bul Mollah denied the allegations of underpaying his employees and forcing them to work on Sundays and public holidays without any compensation.
“We pay the normal fee of N$ 20, then I pay double that on Sundays. I ask them if they want to work. I don’t force them to work,” he said.
Mollah added that he has an accountant who keeps track of all payroll, taxes and social security payments.
The retail owner however could not provide the information of his accountant to verify the social security account.
“I’m outside the country, my mother is very sick. I’m coming on the 19th of this month and then we can do a proper investigation,” he said.
STRICT PUNISHMENTS
Labour expert Diaz Kavu said that many retail employees endure unlawful treatment in the workplace in silence due to the fear of losing their jobs which are often their only source of income.
“As a labour expert, I find it deeply concerning that many retail employees remain afraid to report employers who fail to comply with the new minimum wage requirements. Most workers depend entirely on their salaries to survive and support their families. As a result, they often endure unlawful treatment in silence because they fear losing their jobs,” he said.
Kavu questioned the role of labour inspectors who do not actively monitor and conduct inspections around workplaces and investigate whether
employers are complying with the labour laws.
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