South Africa’s President Cyril Ramaphosa on Monday signed into law the National Minimum Wage Act, setting South Africa’s minimum wage at 20 rand (USD $1.45) an hour, equal to 3,500 rand per month.

Such legislation is the first of its kind, as wages are generally set through collective bargaining in private sector councils or by direct regulation from government following theLabour Relations Act and Basic Conditions of Employment Act.

The bill recognizes that South Africa is “one of the most unequal societies in the world and that there are huge disparities in income in the national labour market” and aims to eradicate poverty and inequality. The bill further notes the constitutional obligation on the State and employers to promote and fulfill the right to fair labor practices.

The law has been met with opposition, where some believe the designated minimum wage is too low, while others believe a national minimum wage will actually increase the unemployment rate.

In April the South African Federation of Trade Unions (SAFTU) held a nationwide strike, describing the proposed wage as an “apartheid wage structure” and demanded a living wage of R12,000 a month. Nevertheless, South Africa’s parliament passed the bill in May.

The law will come into force on a date to be determined by Ramaphosa.