Governance Activist David Kapoma says the revision of the minimum wage more especially for the shop keepers will harm local businesses.
Labour Minister Joyce Simukoko announced that domestic workers will now receive a gross salary of K993.60 from K522.40 while minimum wage for grade 1 shop workers and general workers has risen from K1, 132 to K1, 698.60.
Mr. Kapoma, who is also an entrepreneur, says this is because some of the products are produced locally and that the upward adjustment in salaries for these workers will result in high cost of running business.
He says this may result in some business owners to increase the prices of the products in order to meet the high salaries for the workers.
He cites businesses in the production of weave, that this type of business will be affected as compared to those that import weaves from other countries as they will incur costs in terms of production.
“The government should have waited unlike rushing in announcing this development because as things stand, this will largely affect local businesses as they will fail to sustain their operations because of high salaries when things have remained the same in terms of business,” he said.
Mr. Kapoma has since advised the government to come up with a mechanism that will ensure that business owners will not lose out adding that this may lead to job losses for the general workers.