Sonja Vorster
The National Minimum Wage (NMW) will be in effect on March 1, 2020, as per Government Gazette No 43026 d.d. February 17, 2020.
The increase is as follows for each ordinary hour worked.
For ALL workers currently earning R20 an hour, the NMW increases to R20.76 per hour across ALL sectors apart from the retail and wholesale sector, sectoral determination 9, which was adjusted as per Government Gazette no 42766 of October 14, 2019.
For farm workers currently earning R18 an hour, the NMW increases to R18.68 per hour. For domestic workers currently earning R15 an hour, the NMW increases to R15.57.
For workers on an expanded public works programme currently earning R11 an hour, the NMW increases to R11.42.
The contract cleaning sector for all areas in KZN increases to R23.04 an hour.
Failure to pay in accordance with 76A(1) of the Act the minimum wage upon inspection by a Department of Labour official, or a complaint lodged to the department or with the CCMA will result in the short payments being calculated as a fine. The fine is payable within 14 consecutive days to the employee and proof must be supplied to the department.
The fine is calculated as follows: a) Twice the value of the underpayment; or b) Twice the employee’s monthly wage for the benefit of the employee in respect of whom the failure to comply occurs. Whichever is the greater of a) or b) amount will apply.
Gazette no 42965 – January 22, 2020, No 15 4.2: In accordance with 76A(2) of the Act for a second or further non-compliance which could be that you have not been paying your worker since last year correctly or prior to that, you are also required to pay a total fine of: a) Thrice (three times) the value of the underpayment or b) Thrice (three times) the employee’s monthly wage for the benefit of the employee. Whichever is the greater of a) or b) amount will apply.
Employers, also be aware that you have no appeal process available to you, as that option was removed from the Act.
Employers can imagine, when they are found to be non-compliant with five or more employees, how much money this back pay and fines would be and the embarrassment at having to pay these fines over to your workers.
Do the right thing; get your house in order. Get your contracts, disciplinary codes, grievance procedures, health and safety procedures, and payrolls in order and you may just have one thing less to worry about at night.
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