National Minimum Wage to increase annually in-line with the inflation

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National Minimum wage

The national minimum wage will be reviewed on 1 May of each year, in line with government’s aim of alleviating poverty in the labour market.

“In the review of [the national minimum wage], the commission which advises the Minister [of Labour] has to take a number of factors into consideration such as inflation, the cost of living, wage levels, wage differentials, productivity, the ability of business to carry on successfully as well as the impact on Small Medium and Micro-sized Enterprises (SMMEs) and employment,” Director: Employment Standards at the Department of Labour Stephen Rathai said.

He said the review process should also promote medium-term targets to reduce wage differentials and alleviation of poverty.

“The regulation will include the procedure for exemption, the obligation on employer to consult with the employees or their trade unions and the criteria for evaluating exemptions,” Rathai said.

The National Minimum wage of R3500.00 was introduced in South Africa in 2017 to address poverty levels in the country.

The national minimum wage is scheduled for implementation from 1 May 2018.

The agreed national minimum wage at National Economic Development and Labour Council (NEDLAC) is pegged at R20 an hour for major sectors, with the exception of sectors such as farm workers and domestic workers.

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