The Decusatio ZA Group Chat: Is Unpaid Internship Culture Exploitative or a Necessary Experience?
By Emma Montocchio Writing for The Decusatio ZA Group Chat
At Decusatio, we launched the ZA Group Chat as a space to explore issues shaping South Africa’s next generation of professionals, from employment and transformation to finance and opportunity.
Each discussion brings together real experiences and diverse perspectives from our team and community to unpack both sides of the story.
This time, we’re tackling a familiar frustration: you can’t get a job without experience, and you can’t get experience without a job. For many young South Africans, the supposed solution is an unpaid internship; sold as a “foot in the door,” but for most, it feels like a step in the wrong direction.
We’re told it builds discipline and character. The truth? For many, working for free isn’t a rite of passage; it’s a privilege only a few can afford.
When Experience Crosses a Line
South Africa’s national minimum wage is R28.79 per hour, about R4 992 for a standard work month. That’s not a suggestion; it’s the law.
If someone is performing productive work, they’re not an intern; they’re an employee and deserve to be paid accordingly.
The line between learning and labour is blurred daily, partly because learnerships and entry-level work often overlap. Many interns spend months doing the same work as permanent staff, told it’s “part of development.” Some gain experience, many simply subsidise the company’s wage bill.
Unpaid internships also exclude those who can’t afford them. Transport, food, and data are real costs. Without financial support, countless capable young people are locked out of the system entirely. What should be a gateway to opportunity becomes a form of gatekeeping.
The unintended consequence of YES and other youth employment initiatives
The Youth Employment Service (YES) B-BBEE incentive was designed to fix this. It gives companies transformation incentives to host young workers and gives youth exposure to real workplaces and we would argue it has been one of the most successful incentives / Public Private Partnerships in recent memory.
It’s helped in some cases, but it also creates new dynamics in the labour market.
Each year, many host employers receive subsidised youth via YES and other skills development programmes. While valuable for the participants, these initiatives often mean that companies know they’ll get a new batch of subsidised workers annually, reducing the motivation to hire them permanently.
The result? Exposure, yes; but not always stability.
The hospitality sector is a very good example of this – there is limited incentive to absorb youth (offer permanent employment) at the end of the 12-months as host sites know that they will simply receive more subsidised labour when the next YES or skills development programme rolls around.
We think that we need to start looking more closely at outcomes based initiatives such as the Jobs Boost Fund from Krutham
The Employment Tax Incentive (ETI) also has its issues
The ETI is an incentive offered by the South African Revenue Services (SARS) to encourage employers to take on youth under age of 29 and is a payroll rebate for employers paying between R4500 and R6000 per month. It works on a sliding scale – if you employ somebody on R4492, you can claim R1500 back.
ETI is very popular when it comes to lowering the investment on YES programmes.
The question then becomes: Are businesses then just incentivised to pay the lowest possible to recover the most ETI?
What behaviours are being encouraged here?
What Actually Counts as an Internship?
Here’s the key question: What do we mean by “internship”?
If it’s short-term exposure for students during study breaks, it makes sense that it’s unpaid or lightly paid. But if someone is working full-time in an operational role, that’s not training, that’s labour.
A proper internship should be:
- Structured and time-bound
- Led by a mentor or supervisor
- Designed to teach specific skills that improve employability
Anything else is just cheap staffing under a different name.
From Minimum Wage to Living Wage
While South Africa’s minimum wage sets a legal baseline, many companies are starting to talk about the living wage; what it actually costs to live with dignity (covering housing, transport, food, and data).
For example, Sanlam reports that it “conducted an exercise to ensure that all permanent, non-commission-earning employees receive a living wage.” Major financial firms like banks and insurers have followed suit, disclosing minimum salaries well above the legal minimum.
It’s encouraging, and it proves this shift is possible when businesses prioritise it. Smaller companies may struggle more, but the conversation matters.
A living wage helps young workers focus on learning and growth. A survival wage traps them in stress and instability.
Internships Done Right
Not all internships are exploitative. Done correctly, they’re one of the best bridges between education and employment.
Good internships:
- Pay fairly for real work
- Set clear learning goals
- Provide mentorship
- End with tangible outcomes; either a job offer or experience that truly counts
They don’t exploit desperation, they build capability.
Companies can start by asking a simple question:
If this person were a permanent employee, what would we pay them for the same work?
If the answer is significantly higher, it’s to rethink the structure.
A Youth Verdict: Opportunity Shouldn’t Require Privilege
Every career starts with learning; and businesses do face real cost pressures, especially in a tough economy. But we have to challenge the idea that young professionals must suffer to prove their worth.
Internships should open doors, not close them to those who can’t afford unpaid work.
Experience should build potential, not drain pockets.
And opportunity should depend on capability, not class.