SA National Minimum Wage Increase to R28.79 per Hour Effective March 2025

This 4.2% increase aligns with the National Minimum Wage Act, first implemented in 2019, which mandates an annual review and adjustment of the wage rate.

Employment and Labour Minister, Nomakhosazana Meth, announced on Wednesday that South Africa’s National Minimum Wage (NMW) will rise from R27.58 to R28.79 per hour starting 1 March 2025. This 4.2% increase aligns with the National Minimum Wage Act, first implemented in 2019, which mandates an annual review and adjustment of the wage rate.

Key Highlights of the New National Minimum Wage Adjustments:

1. Universal Application:

   • The increase applies to all workers across sectors, including farm and domestic workers, who have been aligned with the NMW rates since 2022.
   • The NMW is legally binding and enforced by law. Employers are prohibited from paying employees less than the stipulated amount.

2. Special Provisions:

   • Workers under the Expanded Public Works Programme (EPWP) will see their wages increase from R15.16 to R15.83 per hour.
   • Learnership agreements, as per Section 17 of the Skills Development Act, 1998, will have updated allowances detailed in the latest government gazette and published on the Department of Employment and Labour’s website: www.labour.gov.za.

3. Sector-Specific Details:

   • Comprehensive tables detailing adjustments in Sectoral Determination for various sectors, including contract cleaning and the wholesale and retail sectors, will also be available on the department’s website.

4. Legal Obligations and Exceptions:

   • The NMW cannot be altered by contract, collective agreement, or any other legal instrument.
   • Employers are forbidden from unilaterally adjusting working hours or employment conditions to offset the wage increase, as this constitutes an unfair labour practice.
   • The Act excludes members of the South African National Defence Force (SANDF), the National Intelligence Agency (NIA), and the South African Secret Service.
   • Volunteers, defined as individuals who perform work without receiving remuneration, are also excluded from the NMW provisions. Additionally, the NMW does not account for allowances (e.g., transport, tools, food, accommodation), payments in kind (e.g., board or lodging), tips, bonuses, or gifts.

Minister Meth emphasized the government’s commitment to protecting workers' rights and ensuring fair compensation. “We are committed to the implementation of social protection initiatives and wage increases, such as the National Minimum Wage, to prevent worker exploitation and guarantee that employees receive fair remuneration for their services. No employer is permitted to pay below the minimum wage,” she stated.

Violations of the National Minimum Wage Act will result in legal penalties, including fines. Employers are encouraged to review the updated regulations and ensure compliance ahead of the 1 March 2025 implementation date.