Steps in preparation of the national minimum wage
The criteria the Commission uses to determine the proposed increase, is the consumer price index (CPI) plus 1,0%. The CPI was 5,0% in September 2021 and the national minimum wage increase is thus calculated at 6,0%. This means an increase in the current national minimum wage of R21.69 per hour to R22.99 per hour (based on September 2021’s CPI, available when this article was written).
IMPORTANT UPDATE: TAKE NOTE THAT THE MINISTER OF EMPLOYMENT AND LABOUR ANNOUNCED THE AMENDED NATIONAL MINIMUM WAGE ON 07 FEBRUARY 2022 IN THE GOVERNMENT GAZETTE 45882: THE WAGE PER HOUR WAS INCREASED TO R23.19 PER HOUR EFFECTIVE FROM 01 MARCH 2022 – READ THE COMPLETE UPDATE HERE (ENGLISH) OR HERE (AFRIKAANS).
What about exemption from the wage?
The application is done online
What about disputes?
A dispute over non-compliance with the NMWA can be referred either to the Commission for Conciliation, Mediation and Arbitration (CCMA), or to the Department of Employment and Labour. If an employer fails to comply with the NMWA, the employer can be fined as follows (whichever amount is the greater):
- Twice the value of the amount paid to the employee below the prescribed minimum wage; or
- Twice the employee’s monthly salary.
Restrictive labour regulations are considered as one of the most problematic factors when it comes to doing business in South Africa. Employers need to realise that by making a mind shift and proactively managing the business risk associated with labour law compliance, employers are positioning themselves for the employment relationship going forward, as well as any possible future disputes.
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