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Construction workers get new minimum wage deal

Construction workers get new minimum wage deal

Staff Reporter

CONSTRUCTION workers across Namibia will benefit from improved wages and conditions after the Ministry of Justice and Labour Relations extended the 2026 Collective Agreement to all employers and employees in the sector.

The agreement between the Construction Industries Federation of Namibia and the Metal and Allied Namibian Workers Union (MANWU) came into effect on Tuesday and will run for two years.

According to a notice published in Government Gazette No. 9010 on 1 September, the extension makes the terms binding across the entire construction industry, not just the Construction Industries Federation and MANWU members. It is aimed at standardising conditions and ensuring fair treatment across the industry and is now legally binding on all construction employers and employees in Namibia.

Under the agreement, employers must provide protective clothing at no cost to workers. This includes two free overalls per year, safety boots in line with safety requirements, hard hats, gumboots and other required protective equipment. Rain protection must also be provided where necessary.

Workers deployed away from home will receive a living-away allowance of 15% of their hourly wage for the entire period. This is made up of 7.5% for food and 7.5% for inconvenience. Employers must also provide accommodation, ablution facilities and water. An additional travel allowance applies where daily travel exceeds three hours.

A service allowance equivalent to 155 hours of wages will be payable in December each year. Pro rata payment applies to employees who worked only part of the year or whose employment ends before year-end, subject to the agreement.

On retirement benefits, eligible employees must be covered by the Namibia Building Workers Pension Fund, unless the employer provides an equivalent or better retirement benefit.

The agreement also protects workers on re-employment. Employees retrenched or laid off and re-hired by the same employer within six months for the same job must receive the same remuneration rate.

The Ministry said that workplace safety remains a key requirement under applicable health and safety regulations.

Picture for illustrative purposes only. Photo: Pexels

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