The National Minimum Wage (NMW), as well as minimum wages in some specified sectors, will increase with effect from 1 March 2024.

R27,58 per hour
The minimum wage of R25,42 per hour will increase to R27,58 per hour (an increase of approximately 8,5%). The new minimum wage sets a new baseline across all sectors, with a few exceptions.

Farmworkers and domestic workers
The minimum rate for farm workers and domestic workers remain on par with the NMW at R27,58 per hour.

Exceptions
The exceptions are as follows:

Workers employed on Expanded Public Works: R15,16 per hour

Workers with learnership agreements in terms of the Skills Development Act: See the schedule in the link to the Government Gazette below

Increases in other sectors
Employers in SD9: Wholesale and Retail Sector will have to increase their minimum rates (which depends on the job category, the lowest of which is in line with the NMW at R27,58 per hour). Employers in the SD1: Contract Cleaning Sector will also have to increase their minimum rates, with a R30,35 minimum in metropolitan areas and R27,67 in certain rural areas). More details can be found in the Government Gazette (GG) – click here.

Allowances, etc?
Employers are reminded that the NMW excludes allowances that are paid to enable employees to work (such as transport and equipment), or payment in kind (such as board or accommodation), as well as bonuses, tips or food.

Exemption
There is provision for employers to apply for exemption. The National Minimum Wage Exemption System is accessible online at https://nmw.labour.gov.za. Alternatively, employers may approach their nearest branch of the Department of Employment and Labour.

Written by Jan Truter, Labourwise