Summary 

Expanding business operations to Africa requires careful consideration of costs, with labour expenses being a key factor. Understanding the minimum wage in Africa is essential for ensuring compliance with local labour laws and establishing competitive salary benchmarks. 

Introduction 

Expanding into Africa presents exciting opportunities, as the growing demand for innovative products and services creates fertile ground for customer acquisition. However, the real challenge lies in aligning your employment practices and operational strategies with the unique legal frameworks of each country.

A crucial aspect to address is minimum wages in africa, as employees in any African jurisdiction are governed by local employment laws, which include distinct minimum wage standards. 

The minimum wage sets the baseline for employee salaries and significantly influences payroll strategies. Understanding these benchmarks across various countries is essential for developing a robust expansion strategy that ensures both compliance and competitiveness.

Read more to explore the minimum wage in africa and gain insights into how they shape workforce planning across eleven African nations. 

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Nigeria 

The national minimum wage in africa varies in Nigeria, it increased by 133.3% in 2024 to ₦70,000 per month from ₦30,000, with the new wage becoming law in July 20. 

Ghana 

As of January 2024, Ghana’s national daily minimum wage in Africa was set at GHS 18.15. This translates to a monthly minimum wage of approximately GHS 490.05 (calculated as GHS 18.15 per day multiplied by 27 working days).

The Ghana National Tripartite Committee, as mandated by the 2003 Labour Act, is responsible for determining the national daily minimum wage. 

The minimum wage in Africa has progressively increased from 2010 onwards. For instance, in 2019, the daily minimum wage was GHS 10.65, which increased to GHS 11.82 in 2020, GHS 12.53 in 2021, GHS 13.53 in 2022, and GHS 14.88 in 2023. 

As of January 2025, discussions are underway to determine the new minimum wage for the year. The Trades Union Congress (TUC) has indicated plans to engage with the government in the coming weeks to negotiate the 2025 base pay and minimum wage for workers. 

South Africa 

In South Africa, the national minimum wage was first implemented on 1 January 2019. 

Lower minimum wages were established for farm and domestic workers, with gradual equalisation to the national minimum wage over time. 

Farmworkers – R4,226.30 per month, which is now equal to the national minimum wage, after earning 10% less in the past year. 

Domestic workers – R3,719.69 per month. 

Workers on an expanded public works programme – R2,324.56 per month. 

As of 1 March 2024, the national minimum wage was increased to R27.58 per hour, applicable to all workers, including farm and domestic workers. This translates to a monthly wage of approximately R4,779.38, assuming a 40-hour workweek. 

Workers employed in the Expanded Public Works Programme are entitled to a minimum wage of R15.16 per hour. 

Cameroon 

Cameroon’s minimum wage has undergone several adjustments since 2014. On 30 July 2014, it was set at 36,270 CFA francs per month. In March 2023, the government introduced three different minimum wage levels based on sectors: 

Government employees covered by the Labour Code: 41,875 CFA francs per month. 

• Employees in the agricultural and related sectors: 45,000 CFA francs per month. 

• Workers in other sectors: 60,000 CFA francs per month. 

Despite these increases, Cameroon continues to have one of the lowest minimum wages in Central Africa. Historically, the monthly minimum wage in Cameroon reached an all-time high of approximately $70 per month in 2023 and an all-time low of $32.6 per month in 2001. 

Kenya 

As of May 2022, Kenya’s minimum wage in Africa framework saw a 12% increase to KES 15,120 per month. This adjustment reflects the government’s efforts to align wages with the rising cost of living. 

Historically, the minimum wage in Kenya has seen progressive increments, averaging KES 6,522.44 per month from 1994 to 2020, reaching an all-time high of KES 15,120 per month in 2022 and a record low of KES 1,700 per month in 1994. 

Despite these increases, the minimum wage remains below the average living wage for an individual in Kenya. The living wage was estimated at KES 22,300 per month in 2018, with no recent official updates. This disparity highlights the ongoing challenge of ensuring that minimum wage adjustments keep pace with the cost of living. 

Sierra Leone  

Sierra Leone’s minimum wage in Africa increased from 500,000 per month to 600,000 SLL per month for all employees on 1 January 2020. 

There are over 120 countries with a higher minimum wage than Sierra Leone. 

Egypt 

The minimum wage in Egypt increased to 6,000 EGP per month on 1 May 2024, up from 3,500 EGP. 

Minimum wages in Egypt averaged 2,022.33 EGP per month from 2009 until 2024, reaching an all-time high of 6,000 EGP per month in 2024 and a record low of 35 EGP per month in 2009. 

Senegal 

In Senegal, minimum wage rates are determined separately for both agricultural and non-agricultural sectors. As of 1 July 2023, the minimum wage for the agricultural sector increased to 236.86 CFA francs per hour, and for the non-agricultural sector, it increased to 370.52 CFA francs per hour. 

Subsequently, on 1 April 2024, the Council of Ministers approved further increases. For the agricultural sector, the minimum wage rose to 6,338 CFA francs per month, and for the non-agricultural sector, it was adjusted according to specific industry sectors. 

These adjustments reflect the government’s efforts to improve wage standards across various sectors. 

Côte d’Ivoire  

The Minimum wage in Côte d’Ivoire rose from 36,607 CFA francs per month to 60,000 CFA francs per month on 1 November 2014, marking the first increase since 1994. 

Subsequently, on 1 January 2023, the government further increased the Guaranteed Interprofessional Minimum Wage (SMIG) from 60,000 CFA francs to 75,000 CFA francs per month. 

Despite these increases, the minimum wage remains insufficient to meet the living costs in Côte d’Ivoire, and a significant portion of the workforce earns above this threshold. 

Ethiopia 

As of 1 October 2024, the Ethiopian government approved a significant salary adjustment for civil servants, raising the minimum wage from 1,500 ETB to 6,000 ETB per month, marking a 300% increase. 

Despite this adjustment for public sector employees, Ethiopia still lacks a national minimum wage applicable to the private sector. 

The establishment of a Wage Board, as referenced in the Labour Proclamation No. 1156/2019, is intended to periodically revise minimum wages based on the country’s economic development and labour market conditions. 

Tanzania 

Tanzania’s minimum wage in Africa is structured across various employment sectors, with the most recent adjustments implemented on 1 January 2023. 

The updated minimum monthly wages for key sectors are as follows: 

Health Services: 195,000 TZS 

• Agricultural Services: 140,000 TZS 

• Trade, Industry, and Commerce: 150,000 TZS 

• Aviation Services: 390,000 TZS 

• Clearing and Forwarding: 360,000 TZS 

• Telecommunication Services: 500,000 TZS 

• Inland Transport Services: 300,000 TZS 

• Mining and Prospecting Licenses: 500,000 TZS 

• Primary Mining Licenses: 300,000 TZS 

• Dealers Licenses: 450,000 TZS 

• Brokers Licenses: 250,000 TZS 

• Fishing and Marine Services: 238,000 TZS 

These adjustments reflect the government’s efforts to standardize wages across different sectors. It’s important to note that Tanzania’s minimum wage was last revised on 1 January 2023. 

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Conclusion 

Monitoring and staying informed about minimum wages in Africa across various nations can be a complex and demanding task. Non-compliance with labour laws, including wage requirements, may result in financial penalties and legal disputes, making it crucial for businesses to prioritise adherence.

Labour and employment regulations, particularly those governing minimum wages, are among the easiest to breach, emphasising the importance of vigilance. 

For companies seeking to expand into Africa, partnering with a Professional Employer Organisation (PEO) provides an effective solution for managing international compliance.

Collaborating with a local PEO helps mitigate risks related to labour compliance and liability, ensuring your organisation adheres to the minimum wages by country and other local legal requirements. 

Workforce Africa provides specialised expertise in employment practices across multiple African countries. We help businesses overcome hiring challenges and ensure compliance in diverse markets. Contact us today to learn how we can support your expansion into Africa.