13/10/2021
The Department of Employment and Labour has communicated that the general National Minimum Wage will increase from R20 per hour to R20.76 as of 1 March 2020. This represents a 3.8% increase right off the back of the CPI figures.
As with the original minimum wage introduced on 1 January 2019, the gazette also outlines the minimum wage for workers in certain sectors.
This includes:
• Farmworkers are entitled to a minimum wage of R18.68 per hour;
• Domestic workers are entitled to a minimum wage of R15.57 per hour;
• Workers employed on an expanded public works programme are entitled to a minimum wage of R11.42 per hour.
Increases in other sectors
Employers in SD9: Wholesale and Retail Sector, as well as SD1: Contract Cleaning Sector, will have to increase their minimum rates as well.
Are benefits included?
Employers are reminded that the way that they structure a remuneration package is restricted. The National Minimum Wage excludes allowances that are paid to enable employees to work (such as transport and equipment), or payment in kind (such as board or accommodation), as well as bonuses, tips or food. So, for example, one cannot argue that you pay an employee less than the minimum wage because you contribute to their uniform or provide them with meals.
The national minimum wage is the floor level below which no employee should be paid. The national minimum wage applies to all workers – that is, any person who works for another person and who receives or is entitled to receive any payment for that work.
