President Cyril Ramaphosa signed the National Minimum Wage Act (NMW) into law on Friday, 23 November. It will come into effect on 1 January 2019.
The practical implications of the NMW Act are as follows:
• The actual pay the worker receives must be R20 per hour. This excludes employer contributions to transport, accommodation, food and gratuities.
•A minimum payment of 4 hours a day must apply
•Any unilateral changes to working hours or other terms of employment will be an unfair labour practice.
• The government will review the NMW in 18 months.
Employers can apply for a maximum exemption of ten per cent, based on what they can afford. However, they must first consult the unions/employees and the exclusion will only apply for 12 months. Fines for non-compliance with the NMWA start at twice the value of the underpayment and increase from there onwards.
Important matters to attend to:
•Current human resource policies will need to be updated to include reference to the NMWA and incorporate the provisions of the Labour Laws Amendment Act
•Current employment contracts will need to be revisited to address the same matters as set out in the policies
•Those involved must look into and discuss the question of the minimum payment of four hours a day and how to deal with it.
National minimum wage levels
1.Extended Public Works Programmes: R11 per hour
2.Domestic Wages (domestic workers and gardeners): R15 per hour
3.Farm Workers: R18 per hour
4.Other workers: R20 per hour
Dynamic Labour Solutions has compiled the above information. Please contact Fanus on 083 308 1227 or Stephan 082 312 2096 if you need more information or clarity on what the National Minimum Wage Act stipulates.
