… Experts warn “permanent internships” are bypassing the N$18 minimum wage
By Feni Hiveluah
As International Workers’ Day approaches, Namibia’s landmark national minimum wage (NMW), is facing growing scrutiny, with labour experts and activists warning that its impact may be falling short of its promise.
Introduced in 2025 at N$18 per hour, the policy was hailed as a historic step toward protecting vulnerable workers. One year later, cracks are beginning to show. Instead of lifting incomes across the board, a new labour pattern is emerging, the rise of the permanent intern.
While entry level workers are legally entitled to earn about N$3,510 per month, many qualified graduates remain stuck in internships and traineeships paying stipends as low as N$2,500, well below the minimum wage threshold.
Labour expert Herbert Jauch argues the current wage floor is insufficient to sustain even a basic standard of living. He points to the Constitution of Namibia provisions that reference a living wage, suggesting workers should earn enough to live with dignity.
“It keeps people in poverty. One cannot expect workers to get by on such a low wage,” Jauch said, warning that the misuse of internships risks becoming a deliberate strategy to underpay workers.
He added that what was once a declining practice is now resurging at scale, raising concerns that interns are being used to replace permanent employees. Enforcement remains a major obstacle.
Jauch criticized the Ministry of Labour’s inspection system as under resourced and ineffective, citing shortages of personnel and transport for site visits. This, he said, allows widespread noncompliance with wage, health, and safety regulations to persist.
The phased inclusion of vulnerable sectors such as domestic and farm workers has also drawn concern. According to Jauch, inflation is already eroding their earnings before they fully benefit from the minimum wage, leaving them further behind.
Comparatively, Namibia’s wage floor remains low. In South Africa, the minimum wage sits at roughly N$30 per hour. Estimates suggest that a family of five in urban areas like Katutura now requires between N$12,000 and N$15,000 per month to meet basic needs, far above the current baseline.
Social activist Michael Amushelelo has called for urgent reforms, including abolishing labour hire practices, which he describes as exploitative remnants of the past. He further accused both local and foreign companies of violating labour laws, alleging that weak enforcement has emboldened noncompliance.
Amushelelo also referenced Article 95 of the Constitution, which mandates policies ensuring workers receive a living wage. He argued that current conditions show a failure to meet this standard, with even professionals struggling to afford housing.
“It is clear that workers in Namibia are not paid a living wage. Many remain trapped in rental accommodation despite full time employment,” said Amushelelo.
On the other hand, Elias Shikongo, president of the Namibian Employers Federation, urged caution. He emphasized the need for a balanced, evidence-based approach when reviewing the NMW for 2026 to 2027.
“Different industries have different cost structures and productivity levels. Blanket increases could lead to job losses,” said Shikongo.
He noted that businesses are already responding to rising wage costs with cautious hiring, reduced working hours, and automation.
On internships, Shikongo agreed that abuse must be prevented. He stressed that any role involving productive work, fixed hours, and operational contribution should be classified as employment and comply with minimum wage laws.
He suggested internships should generally not exceed 12 months before being converted into permanent roles.While compliance in the formal sector is relatively high, Shikongo acknowledged that it often comes at a significant cost, particularly for small businesses.
As Namibia marks Workers’ Day, the debate around wages, enforcement, and fairness highlights a deeper question, whether the country’s first minimum wage is truly a foundation for dignity, or a ceiling that still leaves many behind.
