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REVISED MINIMUM WAGE LIKELY TO RESULT IN JOB LOSSES FOR EMPLOYEES

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Economist Yusuf Dodia says the revised minimum wage announced by government to take effect next year may result in job losses as some companies are not making enough money to raise salaries for their workers.
Mr. Dodia says some employers may also prefer the use of machines as opposed to humans, which will result in mass retrenchments.
He tells Phoenix News that the current economic crisis that the country is experiencing will make it difficult for employers to award a pay rise to their employers, thereby cut down on their work force.
Mr. Dodia explains that employers that will adhere to the regulation will increase the cost of production which will in turn affect the cost of goods and services.

News Source: Phoenix FM

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