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MINIMUM WAGE INCREASE FROM 1 MARCH 2023
The national minimum wage (NMW), as well as minimum wages in some other sectors, will increase with effect from 1 March 2023.
R25,42 per hour
The minimum wage of R23,19 per hour will increase to R25,42 per hour (an increase of approximately 9,6%). The new minimum sets a new baseline across all sectors, with a few exceptions.
Farmworkers and domestic workers
The minimum rate for farm workers and domestic workers are both on par with the NMW at R25,42 per hour.
Exceptions
The exceptions are as follows:
- Workers employed on Expanded Public Works: R13,97 per hour
- Workers with learnership agreements in terms of the Skills Development Act: See 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 national NMW at R25,42 per hour). Employers in the SD1: Contract Cleaning Sector will also have to increase their minimum rates to a R27,97 minimum in metropolitan areas and R25,50 in certain rural areas). More details can be found in the Government Gazette (GG) – click here.
Are benefits included?
Employers are reminded that the way that they structure a remuneration package is restricted. 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 (e.g. one cannot argue that you pay an employee less than the minimum wage because you contribute to their uniform or provide them with meals).
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.
Comments
Are NPO’s also included
Yes, NPO’s also have to comply.
im concerned about the epwp, i mean R13.00 its not enough we are parents atleast R20.00 hourly will be much better
Goodday can you please help me my previous hourly rate was 24.87 and it move up to 25.42 how do i calculate it because my salary is now less then before
Your rate should have increased, which means that your salary should also have increased (if you work the same hours as before).
Does catering falls under retailing
It depends on the setting. For example: If catering is a relatively minor aspect in a retail store, it can be regarded as falling under the Wholesale and Retail Sector. If catering is a standalone business or part of a guesthouse, hotel, etc., it would fall under the Hospitality Sector.
good day
Could you kindly advise, is there still a rebate on the hourly rate if your guest house has 10 employees or under, if so what will the minimum wage then be.
No, the minimum wage applies irrespective of the number of employees.
does an amployer have a right to add to an minimum wage
Yes, employers may – and many do – pay more than the minimum wage.
Thanks for the update. Very useful to track.