inflation rate | WhaleTales Blog by Chris von Ulmenstein

The Department of Labour has announced the new Minimum Wages for the Hospitality Industry, for the period 1 July 2010 – 30 June 2011, a 7,5 % increase over the previous twelve month period.

The new Minimum Wage for employers with 10 or less employees is R1981,48, the weekly minimum rate is R457,30, and the minimum hourly rate is R10,17.

Employers that have more than 10 employees must pay a minimum wage of R2209 per month, R509,83 per week and R11,33 per hour.

The minimum wage rates are calculated by adding 1 percentage point to the current inflation rate of 6,5 %, and is therefore the lowest wage increase since the Sectoral Determination for the Hospitality Industry was promulgated in 2007, setting minimum wage rates for the first time for this sector.

Chris von Ulmenstein, Whale Cottage Portfolio: www.whalecottage.com

The drop in the price of petrol by R 1,35 per litre at midnight is most welcome for the tourism industry, bringing the new price of petrol at the coast to R 5,76 per litre, the same price as in March 2007! The decrease in the petrol price is larger than was estimated last week.

The price of diesel has dropped by R 1,68 per litre, to R 6, 39 per litre.

The drop in the price of petrol and diesel will have a positive effect on tourism, and should make itself felt in an increase in tourism to the Garden Route and country towns and villages, as well as in a decrease in food prices, which should reduce the rate of inflation, which should bring about a cut in the interest rate in February. This is welcome news for cash-strapped South Africans, who probably over-extended themselves over the festive season.