National Minimum Wage increased to R21.69 per hour

THE National Minimum Wage (NMW) will increase to R21.69 per hour from 1 March.

The 93c increment was announced by Employment and Labour Minister, Thulas Nxesi, on Tuesday.

The department said following a transitional phase, the farm worker sector has been aligned with the NMW rate of R21.69 per hour.

The domestic workers sector will be entitled to R19.09 per hour and could be expected to be aligned with the NMW when the next review is considered.

This development is in line with the NMW legislation that came into effect on 1 January 2019, at a level of R20 per hour.

In terms of the NMW Act of 2018 the policy framework is a floor level, below which no employee should be paid.

According to the Act, it is illegal and an unfair labour practice for an employer to unilaterally alter hours of work or other conditions of employment in implementing the NMW.

“The NMW is the amount payable for the ordinary hours of work and does not include payment of allowances (such as transport, tools, food or accommodation), payments in kind (board or lodging), tips, bonuses and gifts. In considering the annual adjustment, the Commission considered the following factors: inflation, the cost of living, and the need to retain the value of the minimum wage; gross domestic product; wage levels and collective bargaining outcomes; productivity; ability of employers to carry on their businesses successfully; the operation of small, medium or micro-enterprises and new enterprises, and the likely impact of the recommendation adjustment on employment or the creation of employment,” said the Department of Employment and Labour in a statement.