National minimum wage

The Minister of Labour, Mildred Oliphant, informed the general public on 26 March 2018 that the National Minimum Wage Bill will not come in operation on 1 May 2018. No date has been given for the implementation of these Acts. Employers are still in the dark with regards to doing proper financial planning for wage increase that comply with applicable legislation.

What we currently know:

Information currently available indicates that when the NMWB comes into effect and is implemented, employers will be obligated to pay the minimum wage. This amount is currently R20.00 per hour for all employees in South Africa, irrespective of the industry in which they are employed. The farming/forestry and domestic worker sectors have already been given exemption to only pay 90% and 75% respectively of the national minimum wage. This calculates to R18.00 per hour for the farming/forestry sector and R15.00 per hour for the domestic worker sector. Employers in the agricultural sector should take note that a farm worker includes workers who are employed mainly or in connection with farming activities, as well as domestic workers working in a house on a farm. This exemption is valid for two years, after which all employers must pay at least the national minimum wage as announced. Depending on decisions taken in parliament, this minimum wage and period of two years can still change, but is this the latest published information available.

It can be rightly said that the whole issue surrounding the NMWB has led to great uncertainty in the workplace and will employers welcome clarity.

Please feel free to contact us at 089 110 1828 for advise in this regard, or if you require any assistance in this matter.

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