Farm labour costs raise concern of job losses

Farmworkers in Namibia are earning significantly more than two years ago, but a new survey warns the wage gains could cost jobs.The 2026 Wage Survey Report by the Agricultural Employers’ Association (AEA) said the average basic remuneration of farm workers has increased by 22.8% over the past two years, reaching N$3 599 per month.The survey drew information from 420 agricultural employers representing 3 013 farmworkers across Namibia.Survey findings show that the average basic salary consists of a monthly cash component of N$2 695 and rations valued at N$814. On an hourly basis, the basic remuneration amounts to N$18.46.According to the AEA, the substantial increase is largely linked to the introduction of Namibia’s national minimum wage for the agricultural sector in January 2025.However, the association said agricultural employers carry additional compulsory costs that distinguish the sector from others.In addition to meeting the minimum wage requirement, employers are required to provide workers with free housing, water and sanitation, as well as one of three prescribed ration options.When these benefits are included, the average total remuneration package for a farm worker rises to N$5 087 per month, equivalent to N$26 per hour, the report noted.This represents a 44.94% premium over the N$18 per hour national minimum wage applicable to other sectors.The rising cost of employing farmworkers is also reflected in employment figures.The survey recorded a 4% decline in agricultural employment opportunities over the past two years, with the average number of workers per employer falling to 7.44.The association said this decline has occurred despite considerable growth in agricultural production during the same period, raising concerns about the ability of employers to expand their workforce as labour costs increase.Beyond wagesThe report also highlighted additional benefits received by workers. Some 66.22% of farm households have access to electricity or solar power, while all households surveyed have access to free firewood.Beyond basic salaries and compulsory benefits, 85.24% of participating employers said they pay workers an annual bonus. Meanwhile, 90.95% reported that their workers received salary increases during the year.The AEA maintained that these figures demonstrate that farmworkers’ overall remuneration packages extend significantly beyond the statutory minimum wage.The association nevertheless warned that the minimum required labour cost for agricultural employers has risen to levels that could result in further reductions in employment opportunities.It said that the situation requires renewed engagement between government and agricultural unions, suggesting that negotiations could help address the cost pressures facing employers while protecting workers’ earnings and employment.For an industry heavily dependent on labour, the AEA said finding a balance between fair wages, statutory benefits and sustainable employment will be essential to ensuring continued growth in Namibia’s agricultural sector.

Farm labour costs raise concern of job losses

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Namibian Sun 2026-09-01

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Farm labour costs raise concern of job losses

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Namibian Sun 2026-09-01

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