There is a recent development which employers should take note of.
On 2 February 2024, the Minister of Employment and Labour published an amendment to the schedule of the National Minimum Wage Act 9 of 2018 (“the Act”) providing a new national minimum wage as well as the minimum wages in some specified sectors.
Increase in the National Minimum Wage effective 1 March 2024
As before, the adjusted national minimum wage covers the vulnerable sectors of farm workers and domestic workers.
With effect from 1 March 2024, the national minimum wage will increase from the current R25.42 for each ordinary hour worked to R27.58 for each ordinary hour worked (an increase of approximately 8.5%). It is an hourly minimum so the total amount to be paid depends on the number of ordinary hours worked in a week or month.
To illustrate, domestic and farm workers who work an 8 hour day, 5 days a week, must be paid a monthly wage of R 4 412.80. This amount would of course fluctuate based on the number of days and hours worked by such workers, as it is measured by the present minimum hourly rate.
The general increase in the national minimum wage will not apply to employees employed on an expanded public works programme or workers engaged through learnerships. The minimum wage for workers employed on an expanded works programme will increase from R13.97 to R15.16 an hour and workers who have concluded learnership agreements in terms of section 17 of the Skills Development Act, 1998, will be entitled to the increased allowances announced by the Minister, which range from R415.07 to R2421.13 a week, depending on the learner’s NQF level and number of credits earned by the learner.
It is interesting to compare this new minimum wage with the minimum wage in areas covered by bargaining council agreements.
For example:
|
2024 national minimum wage |
R27.58 per hour |
|
Metal Engineering bargaining council |
R93.44 per hour as at July 2022 for a Rate A Worker |
|
Motor Industry Bargaining Council |
Depending on the employee class, the minimum wage rate per hour can range from between R38.81 to R86.39 |
It is important that employers familiarize themselves with the amendments to the national minimum wage and ensure compliance with the amended figures. Employers will need to ensure that they are prepared for the wage increase costs.
Non-compliance may also attract fines in terms of section 76A (1) of the Basic Conditions of Employment Act, 1997.
