National minimum wage 2026 – what to expect

The start of a new year brings about a slight level of uncertainty for employers who need to plan for the year ahead. One of the biggest areas of enquiry from our members revolves around the payment of wages, especially as employers anxiously await the proclamation of the updated national minimum wage in the Government Gazette.

Although we cannot yet know what the minimum wage will be until it’s officially published in the gazette, it’s not entirely unpredictable, due to the process that it goes through.

National Minimum Wage Act

In terms of the National Minimum Wage Act (NMWA), the National Minimum Wage Commission (the Commission) annually assesses and reviews the national minimum wage.  The Commission then submits a recommendation to the Minister of Employment and Labour to adjust the national minimum wage. This recommendation forms part of the Commission’s mandate to protect vulnerable workers by legislating a fair wage that not only promotes a decent standard of living, but also does not undermine the long‑term viability of businesses.

The current national minimum wage of R28.79 per ordinary working hour has been in effect from 01 March 2025. The highly anticipated review of the national minimum wage for the 2026/2027 period will likely be released and published in the Government Gazette by the Minister of the Department of Employment and Labour in the very near future and it will likely come into effect on 01 March 2026.

National minimum wage 2026

The criteria the Commission generally used to determine the proposed increase, is the consumer price index (CPI) plus 1.0%, However over the last couple of years the percentage has varied somewhat. The Department did, however, release a media statement in December 2025 which indicated that the Commission in its report to the Minister, recommended an annual increase in the national minimum wage in the range of CPI + 1.5% for 2026.

The latest official CPI was 3.6% for December 2025 and the national minimum wage increase is thus calculated at approximately 5.1% (3.6% +1.5%) based on current data.  This means that if an estimation was done based on the latest data available at the time when this article was written, employers could possibly see an increase in the current national minimum wage of R28.79 per hour to approximately R30.26 per hour (based on December 2025’s CPI as released by Statistics South Africa on 21 January 2026).

It is important to note that the Department indicated in its media briefing that the CPI that would be applicable would be the inflation rate six weeks prior to the 1st of March 2026.

The Commission had also invited all interested stakeholders to make written representations by 12 January 2026, to give insight into how the proposed wage adjustment may affect workers, employers and the economy at large.

Unfortunately, we will not know how the Commission’s report, or any representations that might have been made (if any), might affect the Minister’s decision until the new national minimum wage is published in the Government Gazette.

Disclaimer: Employers note that the national minimum wage discussion above is a speculation based on the past occurrences of the standard national minimum wage and does not intend as legal advice, and that they should seek professional labour law advice, tailored to their needs and industry.

Contact the LWO for any advice or assistance!

Not an LWO member yet? Take a look at our membership packages.