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The Congress of South African Trade Unions (COSATU) welcomes the government's announcement of above-inflation increases for the National Minimum Wage and BCEA Annual Income Threshold. The CPI plus 2% increase will see the National Minimum Wage increase from R23.19 to R25.42 per hour from the 1st of March 2023. This will provide badly needed relief for the six (6) million workers earning at the NMW level, in particular farm, domestic, retail, hospitality, construction, cleaning, security, and petrol workers. This will help cushion their buying power and their ability to care for their families. It will also inject badly needed stimulus into the local economy spurring growth and helping to sustain and create jobs.

Whilst welcoming this progressive increase, COSATU is deeply concerned by the large number of employers who choose to undermine the NMW Act. It is critical that the Department of Employment and Labour, Bargaining Councils, and unions expose and deal with such recalcitrant employers. We expect to hear Organised Business too chastising employers who are undermining the legislated National Minimum Wage.

The Federation urges President Cyril Ramaphosa to sign the Employment Equity Amendment Bill into law as it will require all companies getting state tenders to prove that they are following the NMW Act. 

The Federation welcomes the increase in the Basic Conditions of Employment Act Annual Income Threshold by a CPI plus a 1% increase from R221 000 to R240 000. This is critical as key labour rights, protections, and benefits are linked to it. These include the Unemployment Insurance Fund, overtime pay, automatic referrals to the CCMA, and permanent employment after three (3) months of work. 

Issued by COSATU