Business and Financial Analyst Blessings Kafwanka has noted that the minimum wage adjustment for domestic and general workers will hurt businesses and increase the cost of living.

Government has revised upwards the minimum wages for workers not represented by trade unions.

The wages that came into effect this Monday, saw various categories revised upwards with domestic workers’ wages increased from K 522.4 to K 993.60 with transport allowance inclusive.

Shop workers’ revised minimum wage is pegged at K 1, 698.60 with transport, lunch and housing allowances inclusive and that the wages will increase according to the grades of employees while the minimum wage of the highest grade in this category will be getting K 3, 558.9.

In the general workers’ category which includes receptionist and guards among others, the minimum wage for category one workers is K 1698.60 while the highest category is at K 3, 151.61.

But Mr. Kafwanka says increasing the minimum wage for general workers by 50% will significantly increase the operating costs for businesses.

Mr. Kafwanka cautions that downsizing will become the only option to ensure compliance with this new law.

“Therefore, considering the current Zambian economic climate, it’s very unlikely that this move will achieve its intended purpose. It’s most likely going to hurt businesses and lead to job losses,” he warns.

He says the nation must appreciate President Edgar Lungu for his passion to ensure that vulnerable workers are not exploited but that at the moment almost every Zambian is vulnerable.

He adds that the timing for this adjustment is inappropriate.