Employment and Labour on proposal for national minimum wage

The National Minimum Wage (NMW) Commission has announced the proposal for the national minimum wage following its recent invitation for written representations on potential adjustments to South Africa’s NMW for 2025.

Today 18 December 2024, the NMW Commission published a report in the government gazette, outlining its recommendations for the annual review of the national minimum wage. The report also invites the public to submit written representations.

The Consumer Price Index (CPI), which measures changes in the prices paid by consumers for goods and services over time, is a key factor in these considerations. As of Novermber 2024, South Africa’s CPI stood at 2,9%, a slight increase from 2,8% in October 2024. It is important to take note that the rate of inflation that will be implemented will be the inflation rate six weeks prior to the 1st of March (i.e. December CPI published in January) which is the date that the new minimum wage comes into effect.

This latest call for input follows a similar request made in August 2024. The process is conducted in accordance with section 6(2) of the National Minimum Wage Act, No. 9 of 2018. The Commission includes representatives from organized labour, business, community, and experts in labour market and employment conditions.

Under the NMWA, the Commission is responsible for annually reviewing and recommending adjustments to the national minimum wage. It also investigates and reports annually to the Minister on the impact of the national minimum wage on the economy, collective bargaining, and income differentials, making this information available to the public.

Previous recommendations

As of 2024, the national minimum wage in South Africa is R27.58 per hour. This rate is applicable to all workers, including farm workers and domestic workers. However, workers employed under the Expanded Public Works Programme (EPWP) have a minimum wage of R15.16 per hour.

The minimum wage represents the lowest remuneration that employers are legally permitted to pay their employees for each ordinary hour worked. It is illegal for employers to pay their employees less than this minimum threshold.

The Commission considers several factors in its annual adjustment of the minimum wage. These include inflation, the cost of living, and the need to maintain the value of the minimum wage; wage levels and outcomes of collective bargaining; gross domestic product (GDP); the ability of employers to sustain their businesses; the operation of small, medium, or micro-enterprises and new enterprises; and the impact on employment or job creation.

The Employment and Labour Minister will announce the new rate of adjustment in February 2025, which will take effect from 1 March 2025.

Requests for inputs should reach the directorate: Employment Standards, Department of Employment and Labour, Private Bag X117, Pretoria, 0001 or be sent to nmwreview@labour.gov.za

The public has until 14 January 2025 to make their written representations.

For more information, kindly contact:
Teboho Thejane
Departmental Spokesperson
Cell: 082 697 0694
Email: Teboho.Thejane@labour.gov.za

#GovZAUpdates

#servicedeliverysa