MIFOTRA speaks on minimum wage and responds to those wondering if it will lead to salary increases

The Ministry of Public Service and Labor (MIFOTRA) has clarified that the new minimum wage currently under review is not intended to automatically increase the salaries of employees already in the workforce, despite public expectations.

It has been six years since the enactment of Law No. 66/2018 of August 30, 2018, which governs labor in Rwanda and mandates the establishment of a minimum wage through a ministerial order. However, to date, that order has yet to be issued.

This law was introduced after different sectors raised concerns that the country’s minimum wage, which has been in place since 1974, was outdated and negatively affecting both workers’ livelihoods and the national economy.

The existing minimum wage, set in 1974, is 100 Rwandan francs per day for each worker.

Many employees were hopeful that the introduction of a new minimum wage would result in salary increases. However, François Ngoboka, Director General of Labor and Employment at MIFOTRA, recently explained that this is not the case.

“In other countries as well, the minimum wage is mainly set to regulate low income categories. Salaries in the broader labor market vary depending on the skills and expertise an employee offers to an employer. Therefore, the new minimum wage will not automatically increase existing salaries,” he said.

Ngoboka further explained that the goal of setting a new minimum wage is to provide a starting point for negotiations between employers and workers, particularly those in lower income categories. Discussions are ongoing to ensure the new wage is fair and sustainable for both workers and the economy.

“We are working carefully to set a minimum wage that will not harm the economy or disadvantage workers in lower income brackets,” he added.

Meanwhile, some employees in the private sector believe that establishing a new minimum wage should lead to higher salaries. They argue that, despite their qualifications, they are often forced to accept low-paying jobs due to a lack of better opportunities.

Fabiola Umutesi, who works in the business sector, shared her experience, saying that the salary she receives is too low for someone who holds a university degree.

“I believe the minimum wage should help raise our salaries because employers are deliberately underpaying us. Given the current cost of living, the old wage standards no longer make sense.
As a university graduate, I shouldn’t be earning what I currently do, but since government jobs that offer fair salaries are hard to find, I have no choice,” she said.

Umutesi also emphasized that employers should not dismiss certain jobs as low-skilled but should recognize the effort and value employees bring to their work, as is common practice in other countries.