By: Nghiinomenwa-vali Hangala
The Ministry of Justice and Labour Relations has indicated that it will be assessing the National Minimum Wage and recommend to offices, ministries and agencies (OMAs) whether to award tenders to selected bidders or not.
The ministry announced, in support of the Ministry of Finance (MoF), an early decision that mandates all public entity award procurement contracts involving an employment component exclusively to bidders who comply with the National Minimum Wage (NMW) Order of N$18.00 per hour.
Executive director in the Labour Relations ministry, Audrin Mathe, emaphasised that in line with the Treasury/MoF directive, all procurement contracts that have an employment component must include a contractual condition that mandates the termination of contracts if it is found that the bidder/company is non-compliant with the NMW Order.
“Any bidder found to go against NMW provisions will be disqualified from the procurement process or face immediate termination of their procurement contract,” stated Mathe.
He also indicated that all OMAs are required to notify the Ministry of Labour Relations of the selected bidders prior to awarding any procurement contract.
“This is necessary for the ministry to verify and confirm their compliance status, leading to a decision by the responsible entity (OMAs) whether to award the contract or not,” Mathe added.
The Ministry of Labour Relations highlighted that, given the government’s economic muscle through public procurement, it will apply the same standards across all public entities to prevent bidders from shopping around for lenient entities.
Mathe said it is crucial for all public entities to collaborate in a harmonised approach to “implement the directive with urgency and uniformity.”
According to the director, this is to protect workers from exploitation while paving the way for improved living standards, decent wages, and social justice.
The NMW became official in January 2025, for all sectors except agriculture, security services, and domestic workers, which will be implemented in phases until 2027.
erastus@thevillager.com.na
