ENSafrica elucidates the new minimum wage

Jessica Moore of ENSafrica’s Pro Bono Office writes:

The Department of Employment and Labour has published increases in the national minimum wage and various sectoral determinations that became effective from March 1 2022.

The national minimum wage has changed from R21.69 for each ordinary hour that an employee works to R23.19. Simply put, this is an increase of R1.50 per hour.

It is imperative to note that the national minimum wage does not include the payment of allowances (such as food or accommodation), payments in kind or gratuities such as bonuses, gifts or tips. This is important to bear in mind for live-in domestic workers.

If an employment agreement already exists between an employer and employee which provides for a salary higher than the prescribed minimum wage, the employer cannot unilaterally reduce this without the employee’s consent.

This will constitute a breach of contract and/or unfair labour practice. If the employee is paid less than the prescribed minimum wage, the employer must increase the employee’s salary to be in line with the minimum wage.

It is an unfair labour practice for an employer to unilaterally alter hours of work or other conditions of employment to avoid implementing the national minimum wage.

There are legal implications for employers who do not comply with the national minimum wage. An employer may be issued with a fine if an employee is paid less than the national minimum wage in terms of the Basic Conditions of Employment Act. An employer may be fined:

• Twice the value of the amount the employee is paid below the prescribed minimum wage.
• Twice the employee’s monthly wage.
• The greater the amount thrice the value of the underpayment or thrice the employee’s monthly wage.

Disputes can be referred to the Commission for Conciliation, Mediation and Arbitration. The dispute will firstly go through conciliation and if unresolved it will then be referred to arbitration. A dispute can also be referred to the Department of Employment and Labour.

Details: ENSafrica 011 555 0980; WhatsApp 064 926 0431.