Sonja Vorster
As we anticipated, the National Minimum Wage Act (NMW Act) came into effect on January 1, 2019.
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Although it once again had been full of errors, Parliament announced last week that the Act, as announced by the President, is in force.
The National Minimum Wage Bill (“the NMW Bill”), provides, among others that the New National Minimum Wage is R20 per ordinary hour.
All industries that are regulated by sectoral determinations or bargaining councils are required to raise the hourly rates to R20 per hour, if it is was under the rate effective January 1, 2019.
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There are only four exceptions for a temporary period, these are:
1. For farm workers who are entitled, from January 1, 2019, to a minimum wage of R18 per hour;
2. Domestic workers which include gardeners at a domestic residence who are entitled to a minimum wage of R15 per hour.
3. Workers employed on an Expanded Public Works Programme are entitled to a minimum wage of R11 per hour;
4. And workers who are in learnership agreements contemplated in Section 17 of the Skills Development Act, 1998 are entitled to allowances as specified in schedule two to the NMW Bill.
The calculation of the minimum wage will exclude:
• Any payments made to enable a worker to work including any transport, equipment, tools, food or accommodation allowance;
• Any payment in kind including board or accommodation;
• Gratuities including bonuses, tips or gifts; and
• Any other prescribed category of payment.
It is contemplated that the minimum wage will be reviewed on an annual basis.
An employer MAY NOT reduce hours to accommodate the new rate or make unilateral changes to the conditions of employment as it will constitute unfair labour practice.
The NMW Act provides that employers can apply for an exemption. The application must be granted before the rate is altered, if such exemption is granted.
An exemption granted in terms of the section must specify the period for which it is granted, which may not be longer than one year, the wage that the employer is required to pay the workers and any other relevant condition.
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