Adjustments of the wage rates in the National Minimum Wage Act, 2018 effective 01 March 2025
Adjustments of the wage rates in the National Minimum Wage Act, 2018 effective 01 March 2025.
The National Minimum Wage Act (“Act”) and Adjustments:
The purpose of the National Minimum Wage Act 9 of 2018 is to advance economic development and social justice by improving the wages of lowest paid workers. The Act protects workers from unreasonably low wages and preserving the value of the national minimum wage. It promotes collective bargaining and supporting economic policy. This Act applies to all workers and their employers except members of the South African National Defence Force, the National Intelligence Agency and the South African Secret Service. Every worker is entitled to payment of a wage in an amount no less than the national minimum wage. The Minister of Employment and Labour, Nomakhosazana Meth has announced an upward adjustment of the rates of the minimum wages. The amendment of the national minimum wages contained in Schedule 1 and 2 of the Act was published on 04 February 2025. The new minimum wages are effective 01 March 2025.
Minimum wage increase
- The minimum wage of R27.58 per hour will increase with approximately 4.4% to 79 per hour. Farm workers will earn a minimum in line with the rate, as will domestic workers. However, workers employed in expanded public works programmes will be entitled to a lower rate at R15.83 per hour. Learnership allowances will also increase on a minimum allowance per week based on the credits already earned by a learner.
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. As such, 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 i.e., any person who works for another person and who receives or is entitled to receive any payment for that work.
The publication on 04 February 2025:
- Department of Employment and Labour (South Africa). (04 February 2025). National Minimum Wage Act 09 of 2018. National Minimum Wage Amendment 2025. Government Gazette, 52053, Vol. 716, p. 3.
