The Minister of Employment and Labour has published increases to the national minimum wage applicable to all employees covered by the National Minimum Wage Act, 2018 (“the Act”).
The new minimum wage, which comes into effect on 01 March 2025, has been set at R28.79 per ordinary hour worked, marking an average increase of approximately 1.04% across all job categories contained in Schedules 1 and 2 of the Act.
The base minimum wage applies across all industries in South Africa, including farm and domestic workers. Workers employed under the Expanded Public Works Programme are now entitled to R 15.83 per hour. Schedule 2 of the Act prescribes learnership allowances in respect of learners appointed in terms of learnership agreements governed by the Skills Development Act, 1998.
With the recent 25 basis point reduction in the repurchase rate, and the slowly creeping inflation rates, it remains to be seen whether this 1.04% increase will allow South Africans a little more breathing room or not.
Employers must ensure that all wage adjustments are implemented by 1 March 2025 in compliance with the Act. Failure to comply with the new wage structure may result in penalties and enforcement by the Department of Employment and Labour.
For further details, please refer to the Government Gazette here and for more information, please contact Melanie Hart at melanie@bv-inc.co.za.
Disclaimer: This article is provided for informational purposes only and is not intended to serve as legal advice. Readers should consult one of our legal professionals for advice tailored to their specific circumstances.