Following our announcement on the increase in the earnings threshold in terms of section 6(3) of the Basic Conditions of Employment Act, 75 of 1997 (BCEA), an amendment has been made increasing the national minimum wage. The Minister of Employment and Labour announced amendments to the National Minimum Wage Act, 9 of 2018 (NMWA) which applies to employees who earn below the earnings threshold which is set to increase to R241 110.59 per annum with effect from 1 March 2023.
The national minimum wage is now R25,42 per hour for ordinary hours worked. Specific sectors will benefit such as domestic workers and farmworkers. There are various exceptions to the above and employers are encouraged to review the Sectoral Determination tables to ensure full compliance with the increases set out. Examples of exceptions include workers employed in the contract cleaning sector, public works programmes, wholesale and retail sectors and which vary between metropolitan and rural areas.
Employers and employees are encouraged to obtain legal advice on the consequences of the changes to the new national minimum wage.
Should you require any more information, please contact Melanie Hart at melanie@bv-inc.co.za.