New minimum wage effective from March

The new National Minimum Wage (NMW) base rate will come into effect in March. The new rate for the NMW for each ordinary hour worked will be R20,76 – an increase of 76c.

In terms of a notice in the Government Gazette and signed by Employment and Labour Minister TW Nxesi, it will be applicable on 1 March. The new amendment to the NMW is in line with the Basic Conditions of Employment Act, which allows for an annual review.

In terms of the new determination

• 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 will receive a minimum wage of R11,42 per hour.

The national minimum wage is the level below which no employee should be paid, and this does not include any other allowances.

The NMW came into effect on 1 January 2019 at a level of R20 per hour.  The NMW 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.

For workers who still earn below the NMW level, legislation provides for a transition period until all employers are subjected to the NMW.