As from 1 July 2012, the minimum wage rates in the hospitality sector are increased by the following:
Employers with 10 or less employees:
Monthly rate: R 2240,60
Weekly rate: R 517,10
Hourly rate: R 11.49
Employers with more than 10 employees:
Monthly rate: R 2495,80
Weekly rate: R 576,00
Hourly rate: R 12,80
These increases are only on minimum wage rates. Higher earners therefore do not necessarily have to receive the same percentage increase.
The current wage increases have been determined by utilizing the CPI reported by Stats SA on 23 May 2012. The current level of CPI is 6,4%. The wage increase is therefore determined by adding 6,4% plus 1% as stated in the current Sectoral Determination. Therefore the total increase is 7,4%.
The increases do not apply in areas that are governed by bargaining council agreements, for example the Bargaining Council for the Restaurant, Catering & Allied Trades that applies in Johannesburg and certain surrounding areas, and the Bargaining Council for the Tearoom, Restaurant & Catering Trade in Pretoria.
11 Comments
Response to Johan: Sometimes there is an overlap, but in your case it seems to lean more towards Hospitality
Hi Jan, we have an Game (Hunting) Lodge in The Marble Hall area. We have 5 Employees (1 Manager, 2 cleaners, 1 tracker, 1 gardener). our lodge offer hunting and accommodation (all self catering). Do we fall under the Hospitality Industry or Agricultural Industry? Your help is much appreciated.
Response to Sonya: I assume you are not in an area where a Bargaining Council Agreement applies to your business (e.g. Johannesburg or Pretoria area), in which case the Sectoral Determination will not apply). If it does apply to your business, you would have to pay your at least the minimum rate, as gratuities or tips are specifically excluded. While the payment of an annual bonus shows your commitment to your employees, it will not help you if there is a dispute on the minimum wages – you will be found lacking in compliance.
I own a restaurant and my 8 employees only work a 5 day week / 2 days off and never exceed 40 hours a week. I pay them R2200 per month plus they get anywhere between R400 – R700 a month in tips plus an annual bonus. I also provide full transportation to and from work for them. I realize that I am paying them slightly short of the minimum wage of R2240.60 but with all the added benefits does that make up for the R40.60
Response to Mike: The minimum wages laid down in terms of Sectoral Determinaton 14: Hospitality Sector apply to camps and caravan parks. We’ve sent it to you.
To Maureen: Where are you based?
Response to Lisa: You first have to check whether you are in an area that falls under a Bargaining Council Agreement for the catering industry – if so, the minimum rate might be different to that which is prescribed by the Sectoral Determination for the hospitality industry. The minimum monthly rate will be based on the assumption that the employees work normal working hours, which is likely to be 45 hours per week. To the extent that their working hours exceed this, you would have to pay them at the applicable overtime rate.
I need more information regards the
going rates in our area for this year
Goodday
I’m new to this, and need clarity please. I just opened up a takeaway and have 3 staff members I need to work for me. Are you saying the minimum wage I can pay is R2240.60? Working hours are mon-sat, 0800-1800.
Response to Pam: “Employees” refers to all employees, including management.
i would like to know, when ‘they say more then 10 employees, are they refuring to total employees in the company ie managers or just lets say ‘kitchen workers’