Sonja Vorster

The National Minimum Wage Bill, 2017 (NMWB) specifies a national wide wage rate of R20.00 per hour (NWR) for each ordinary hour worked.
The implementation of this highly contested bill resulted that the Minister of Labour did not make an announcement or gazetted the domestic workers new rate, which normally would have been effective last year on December 1, 2017.

This resulted in a lot of confusion amongst employers and employees. On December 15, 2017 the Minister of Labour clarified the matter by announcing and gazetting the domestic minimum rate for Sectoral Determination 7, which came into effect on January 1, 2018. The employers of domestic workers and garden workers must therefore be adjusted accordingly. If you paid your worker cash daily on the old rate, you need to adjust the shortfall.

It is extremely important that employers and employees take notice that the payment of the new National Minimum Wage Rates (NMWR) takes precedence over ANY contract of employment provisions, collective agreements or law.
This new amendment MUST also constitute a new term of the employee’s contract except to the extent that the contract of employment, collective agreement or law (such as Bargaining Council agreements)provides for a wage that is higher and therefore more favourable to the employee.

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The (NMWR) of R20.00 per hour excludes any payment made currently towards transport for the employee, equipment, food or accommodation allowances, any payment in kind, which includes board or accommodation, gratuities including bonuses, tips or gifts and any other prescribed category of payment.

Be warned employers that it will constitute an unfair labour practice where employers unilaterally alter hours of work or any other conditions of employment when this bill comes into effect on the 1st of May 2018.
In a future article of LABOUR BUZZ, I will discuss this new bill in more detail to assist readers to have a wider understanding of this NMWB.

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The amendment of the Sectoral Determination 7: Domestic Workers South Africa. Our region falls in Area B:

For workers working for 27 hours per week or less the:
Hourly rate: R14.03 Weekly Rate for max hours of 27 per week: R378.81.
Monthly Rate: R1641.38.

For workers working more than 27 hours per week:
Hourly Rate: R11.89 Weekly Rate based on 45 hrs per week: R535.05.
Monthly Rate: R2318.37.

Some short-term relief for employers of domestic and garden workers and farmers

When the (NMW) bill comes into effect on the 1st of May 2018 of R20.00, the rates for Domestic workers working 27 hours per week or less must be adjusted from R14.03 to R15.00 and the rate for Domestic workers for above 27 hours per week must be adjusted from R11.89 to R15.00. The Bill provides this sliding period for this sector to allow and prevent massive lay-off’s.

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This adjustment period is also for farmers and the farm workers will be R18.00 per hour and not R20.00 per hour. For the rest of the sectors the minimum of R20.00 per hour will stand.

Please note: If an employee is earning more at present per hour when the NWB comes into effect the rate may not be decreased and keep in mind that hours may not be shortened unilaterally as you will find yourself on the wrong side of the law.

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