National minimum wage 2021

Despite the poor state of the South African economy, as well as the impact of the Coronavirus (COVID-19) and negative effect of the state of containment on employers’ financial position, the Minister of Employment and Labor on 8 February 2021 in the Government Gazette 44136 announced the amended national minimum wage.

The amended minimum wage will come into effect on 01 March 2021. The current national minimum wage of R20.76 per hour increases to R21.69 per hour.

Take note of minimum wage changes in the following industries:

Agricultural sector

From 01 March 2021, the agricultural sector’s minimum wage will be equivalent to the national minimum wage of 2021 of R21.69 per hour. The agricultural sector previously received exemption to pay only 90% of the national minimum wage (this amounted to R18.68 in 2020). However, this exemption has now expired and the minimum wage for farm workers has been equalized to the national minimum wage for 2021. This works out to a 16.1% increase from the previous minimum wage for farm workers from R18.68 per hour (2020) to R21 .69 per hour (2021). Employers in the agricultural sector must also note that domestic workers on a farm are considered farm workers and must therefore receive the correct wage.

Domestic worker sector

The domestic worker sector’s minimum wage increases from 01 March 2021 to R19.09 per hour.

Contract cleaning sector

The contract cleaning sector’s minimum wage increases from 01 March 2021 based on the specific area in which the employer does business (see the amended Schedule 2 on page 5 of the Government Gazette):

• Area A: R23.87 per uur – Stad Kaapstad, Groter Oosrand Metro, Stad Johannesburg, Stad Tshwane en Stad Nelson Mandela, Plaaslike Rade van Emfuleni, Merafong, Mogale City, Metsimaholo, Randfontein, Stellenbosch en Westonaria.
• Area B: Kollektiewe Ooreenkoms soos vervat in die Bedingingsraad vir die Kontrakskoonmaakdienste – Alle areas in KwaZulu-Natal.
• Area C: R21.77 per uur – Alle areas nie vermeld in Areas A en B nie.

Wholesale and retail sector

The wholesale and retail sector’s minimum wage increases from 01 March 2021 based on the specific area in which the employer does business, as well as the respective job descriptions of employees (see the amended Table 1 and 2 on page 6-7 of the Government Gazette).