Understanding the composition and wage structure of the South African labour market is
crucial in the progressing national minimum wage debate in the country. This study
highlights the centrality of wages in household income, and in determining inequality and
poverty levels in the county. It then charts key trends in the labour market, before
presenting a snapshot of the composition and earnings of the workforce in the current
environment. A definition for a “working-poor” threshold is developed in the paper by
linking individual earnings to household poverty. Finally, we consider the differential
coverage that a national minimum wage would have on different sectors and demographic
groups in the economy