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Wage hike to 21,500 CDF fuels tensions at Metalkol, Ruashi

Wage hike to 21,500 CDF fuels tensions at Metalkol, Ruashi

Social tensions are mounting in the Democratic Republic of Congo’s mining sector as the phased implementation of the country’s new guaranteed minimum interprofessional wage, known by its French acronym SMIG, begins to have tangible effects. Since May 3, 2026, labor protests have been reported at Metalkol SA, a subsidiary of Eurasian Resources Group (ERG), and at Ruashi Mining, owned by Metorex and Gécamines, over the rollout of the second phase of the SMIG, set at 21,500 Congolese francs (CDF).

According to Radio Okapi, the unrest is most visible at sites in Kolwezi and Lubumbashi, where workers are demanding that their salaries be adjusted in line with the new pay scale and are calling for broader improvements to working conditions. Employees have cited inequalities between local and expatriate staff, as well as what they describe as abusive dismissal practices and restrictions on union representation.

A dispute over the exchange rate used to convert salaries is also fueling the tensions. At Metalkol, worker representatives have accused the company of seeking to apply a rate of 1,800 CDF to the dollar — below the market rate, which is closer to 2,200 CDF — a move they say would effectively reduce workers’ real income.

A sharp increase in labor costs

Enacted under Decree No. 25/22 of May 30, 2025, the new SMIG introduced a phased increase in the minimum wage, rising from 7,075 CDF to 14,500 CDF in May 2025, then to 21,500 CDF starting in January 2026, marking an overall increase of more than 200%. The framework also maintains a wage compression ratio of 1 to 10, automatically pushing up all pay scales.

According to the Federation of Congolese Enterprises (FEC), the first phase of the increase nearly doubled payroll costs in several sectors. A mid-level manager previously earning about 70,500 CDF a day would now receive close to 145,000 CDF, equivalent to approximately $1,700 per month before benefits. Including allowances, total compensation can exceed $2,000.

If the second phase of 21,500 CDF is implemented while maintaining the current wage compression ratio, that same manager would earn more than $2,500 per month. “A level that is unsustainable for the Congolese economy,” the FEC said, warning that “the DRC cannot sustain a SMIG equivalent to that of Belgium without jeopardizing competitiveness and employment.”

The employers’ federation also argued that applying the SMIG uniformly across all sectors would amount to “condemning agriculture and forestry, already in dire straits.” The FEC has called for a more gradual and sector-specific implementation, citing in particular the need for a separate minimum wage for agriculture.

The government has maintained its stance. In January 2026, Prime Minister Judith Suminwa Tuluka reaffirmed the need to implement the revised SMIG of 21,500 CDF while calling for social dialogue within the framework of the National Labor Council.

The unrest at Metalkol and Ruashi Mining highlights a central challenge for the Congolese economy: balancing higher purchasing power with manageable business costs, in an environment marked by sharp sectoral disparities. Whether large extractive companies — generally better capitalized than other segments of the economy — can absorb the rise in labor costs is seen as a leading indicator for other sectors.

Ronsard Luabeya

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