South Africa’s new growth path released

The government is proposing an income freeze for everyone earning over R550 000 a year in salaries and bonuses and a cap at current inflation on increases for everyone earning more than R20 000 a month, Ebrahim Patel, the minister of economic development told MPs.
The government tabled its new growth path in parliament today, defining a framework for discussions with business and labour on strategies to raise annual economic growth to at least 7% of GDP.
Part of the plan is for a social accord between business, government and labour on price and wage restraint.
“There is more space at the top end of the labour market for sacrifices,” Patel said.
The document proposes that only those earning less than R20 000 a month should get increases above the inflation rate and then by only a few percentage points.
Patel confirmed that the government’s target would be to create five million new jobs in the next 10 years and said most of them would have to come from the private sector.