Question: Does an employee have a right to an annual wage increase?
Answer: There is no general duty on an employer to give an annual increase.
Brief explanation: The Basic Conditions of Employment Act of 1997 does not make provision for minimum wages or wage increases. However, if the employer’s business falls in an industry or geographic area where a Bargaining Council Agreement or Sectoral Determination applies, the employer has to comply with minimum wage stipulations contained in such Agreement or Determination. If the employee is already earning the same or more than the applicable minimum wage, the is no obligation to increase the employee’s wages.
If you are unsure whether such an agreement applies to your business, please contact our offices.