LABOUR BUZZ: National minimum wages effective May 1, 2018

Employers that cannot afford the increase MUST apply on-line for exemption

May 20, 2018

Estcourt News 3 minutes read

Sonja Vorster

The time arrived on May 1, 2018 and the National Minimum Wage (NMW) became law in South Africa. Jubilation for many workers and unions but serious concern in how to keep business doors open for many employers.

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Employers that cannot afford the increase MUST apply on-line for exemption. Applications for exemptions does not make provision for manual submission and the process can only be accessed via the NMW website www.nmw.dol.gov.za which should have been running since March 2018 to allow applications. I have attempted to access this online application system but with no success.

However, to assist employers and as a lot of confusion seems to be around the following, wages needs to be implemented effective 1 May 2018.

The department’s Mathilda Bergman: Deputy Director Employment Standards warned: “Employers who do not comply with the NMW bill will be charged double back payment to the owed employee.”

All industries that are not regulated by sectoral determinations or bargaining councils are required to raise the hourly rates to R20 per hours.

All industries that fall under a bargaining council and whose bargaining council rates fall below R20 per hour must raise the hourly rate to R20 per hour.

The Farm workers and Forestry sector Sectoral determination No 13 must raise the hourly rate from R16.25 per hour to R18.00 per hour, as per the grace period given in the NMW bill.

The domestic workers Sectoral Determination No 7 must raise the hourly rate R14.03 for work below 27 hours per month to R15.00. And for above 27 hours from R11.89 to R15.00 per hour as per the grace period given in the NMW bill.

Retail and Wholesale Sectoral Determination No 9: Area B. The following job categories are effected and needs to be increased, which are general assistants/trolley collectors, security guards, forklift operators, drivers >3500kg, merchandisers/ shop assistants, checkers and deli assistants, cashiers, drivers 3501, 9000kg the employees that are not effected as the determination 9 caters for them to be remunerated above the NMW are clerks/sales assistants/sales persons/ block men/ bakers/drivers 9001<16000kg, displayers, drivers 16001kg supervisors, trainee managers, assistant managers and managers.

The Hospitality Sectoral Determination No 14 – employers employing less than 10 employees, need to increase from R16.36 to R20.00 per hour and Employers employing more than 10 employees from R18.25 to R20.00 per hour.
The Contract Cleaning Sectoral Determination No 1 for Area B needs to increase from R14.03 for less than 27 hours per month to R20.00 and for more than 27 hours from R11.89 to R20.00 per hour.

The Private Security Sector Sectoral determination No 6 for Area 3 previously classified according the experience level will require to be raised to R3 899.70 and they are clerical assistants, clerks, controllers, drivers of light, medium and heavy vehicles, general workers, handymen, and any title assigned that is not specified. Security officers grades A – E are not affected as the minimum rate in the sectoral determination is higher than the R3 500 and also artisans.

The Taxi Sectoral determination No 11 which I have never seen being enforced by the Department also requires that drivers and conductors be paid according the NMW bill of R3500 per month or R20 per hours.
These increases are massive for many employers and many employers cannot see a way forward during these difficult economic times and how they would be able to afford these increases.

The unions on national level are busy fighting to have the entire bill revised and increased to over R5 000 per month which would be near impossible for small, medium and even larger organisers to handle.

Employers need to understand that the NMW is not going to go away and employees need to understand very clearly that you may be earning a larger income but the need for higher productivity and smarter working methods are no longer just going to be a mere requests from employers, but an absolutely necessity.

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As the demands by government becomes more and more demanding on the business community for higher wages, the demand will shift from the employers to demand more for the money they are forced to pay out, simply to just keep the doors open and to continue to provide employment.

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