Minimum Wage Increase Effective 1 March 2024
The National Minimum Wage (NMW), as well as minimum wages in some specified sectors, will increase from the 1st of March 2024.
National Minimum Wage increase
The minimum wage, which is currently R25,42 per hour, will increase to R27,58 per hour. This is an increase of approximately 8,5%.
It is also important to note that the minimum rate for farm workers and domestic workers remain on par with the National Minimum Wage of R27,58 per hour.
All employers are obligated to pay this increased rate per hour, with a few exceptions.
The exceptions are as follows:
- The NMW for workers who are employed on Expanded Public Works are R15,16 per hour
- Workers who work under learnership agreements in terms of the Skills Development Act shall be paid according to the Government Gazette (please click on the following link to view the Gazette: click here.
Sector specific increases
Employers in the Contract Cleaning Sector (SD 1) will have to increase their minimum rates to a minimum of R30,35 for metropolitan areas, and R27,67 in certain rural areas. More details can be found in the Government Gazette: click here
Employers who fall within the Wholesale and Retail Sector (SD 9) will also have to increase their minimum rates from 1 March 2024. The minimum rates are determined by job category, the lowest of which is in line with the NMW at R27,58 per hour.
Does the minimum wage include allowances?
No.
The National Minimum Wage excludes allowances. Examples of those allowances are:
- Food allowances;
- Allowances that are paid to employees that enable them to work, e.g. transport and equipment allowances;
- All payments in kind, e.g. board or accommodation allowances;
- Bonus payments and
- Tips that are paid to employees
Can employers apply for exemption from paying the National Minimum Wage?
Yes.
The National Minimum Wage Exemption System is accessible online at https://nmw.labour.gov.za.
Employers may also approach the nearest Department of Employment and Labour branch.
