The national minimum wage was adjusted by 3.80% and the amended minimum wage as from 1 March 2020 will be R20.76 per hour .

Take note of the following industries that have their own minimum wage (effective 1 March 2020):

Contract cleaning sector

• Area A: R22.84 per hour (City of Cape Town, Greater East Rand Metro, City of Johannesburg, City of Tshwane and City of Nelson Mandela, Local Councils of Emfuleni, Merafong, Mogale City, Metsimaholo, Randfontein, Stellenbosch and Westonaria.
• Area B: R23.04 per hour (All areas in KwaZulu-Natal)
• Area C: R20.83 per hour (All areas not listed in Areas A and B)

Wholesale and retail sector

Agricultural sector

Domestic worker sector

The amended minimum wage for the Domestic workers sector will be R15.57 per hour.

The Domestic worker sector minimum wage is applicable to employees in a private household, such as:

• domestic workers
• gardeners
• employees that take care of children, the sick, the aged, the frail or the disabled
• domestic workers supplied by employment services
• take note: a domestic worker employed on a farm, where primary or secondary agricultural work is performed, is regarded as a farm worker and does not resort under the Domestic worker sector, but rather under the Agricultural sector.

The minimum wage schedule applicable to the Wholesale and Retail Sector, as published by the Minister of Employment and Labour in the Government Gazette on 2 August 2019, was incorrect. An amended schedule was published on 14 October 2019 with retrospective effect from 2 August 2019.

This minimum wage will be effective until the review of the national minimum wage, as released by the Department of Labour.

Click here for a breakdown of Areas A and B respectively, as applicable.

Contact the LWO for any advice or assistance in this regard.

All employers must comply with the Employment Equity Act, but “designated employers” (who meet the minimum requirements) have additional obligations.

The goal of the Employment Equity Act:

The Employment Equity Act aims to eliminate unfair discrimination in the workplace by promoting equal opportunities and fair treatment.

Click here for more information regarding:

• Are you a “designated employer”?
• Obligations of a “designated employer”
• Deadlines

Take note:

Should a “designated employer” fail to comply with these obligations a fine of up to R2.7 million or 10% of the employer’s annual turnover (whichever is the greater) can be imposed.

Please contact the LWO for advice and assistance in this regard. We are available 24/7.

The new minimum wage for the Contract cleaning sector comes into effect on 1 February 2019. Click here for a complete breakdown of the respective Areas and minimum wages applicable.

This minimum wage is higher than the national minimum wage. Employers are obligated to pay the higher wage as per Sectoral Determination 1.

Here with the minimum wage rates for contract cleaners:

• Area A: R22.00 per hour
• Area B: R22.20 per hour
• Area C: R20.07 per hour

Employers are faced with many business risks daily. The best way an employer can address labour as business risk is to act proactively. Employers must ensure that the employment contracts, disciplinary code, procedures and policies are in place and comply with applicable legislation, including Sectoral Determination 1. It is very important to consider the role labour plays in the workplace and to understand that legislation can be used to the employer’s benefit. It is again emphasized that employers are obliged to comply with all applicable legislation, including the payment of the minimum wage. If the employer does not pay at least the minimum wage and therefore does not comply with legislation, the employer will face certain legal implications and consequences.

Contact the LWO for any assistance and advise in terms of the above mentioned.

The Domestic worker sector’s minimum wage is applicable to employees in a private household, such as:

• domestic workers
• gardeners
• employees that take care of children, the sick, the aged, the frail or the disabled
• domestic workers supplied by employment services

Take note: a domestic worker employed on a farm, where primary or secondary agricultural work is performed, is regarded as a farm worker and does not resort under the Domestic worker sector.

The new minimum wage for the Domestic worker sector came into effect on 3 December 2018 and is as follows:

• Area A – Click here for the complete list of municipalities that resort under Area A:
  • R13.69 per hour for employees who work more than 27 ordinary hours per week.
  • R16.03 per hour for employees who work 27 hours per week or less.
• Area B – all areas not specified in Area A:
  • R12.47 per hour for employees who work more than 27 ordinary hours per week.
  • R14.72 per hour for employees who work 27 ordinary hours per week or less.

Employers must however take note of the National Minimum Wage Act that came into effect on 1 January 2019, which requires all employers to pay at least the national minimum wage. This amount is set at R20.00 per hour for all employees in South Africa, irrespective of the industry in which they are employed. The Domestic worker sector has been given an exemption to only pay 75% of the national minimum wage, which calculates to R15.00 per hour. This exemption is valid for 2 years, after which all employers must pay at least the national minimum wage as announced.

This means that form 1 January 2019 every employee in the Domestic worker sector must receive at least R15.00 per hour as per the national minimum wage, unless the industry’s minimum wage is higher, as in the case of employees who work 27 ordinary hours per week or less in Area A. These employees must receive R16.03 per hour.

The close working relationship between employer and employee that is intrinsic to the Domestic worker sector, creates unique challenges and risk for the employer.

Contact the LWO for any advice and/or assistance in this regard. We are available 24/7.

What does this entail?

With effect form 1 January 2019, employers will be obligated to pay at least the national minimum wage. This amount is set at R20.00 per hour for all employees in South Africa. This is irrespective of the industry they are employed in. The farming/forestry and domestic workers sector have been given an 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. This exemption is valid for two years, after which all employers must pay at least the national minimum wage announced. 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.

Exemption?

Other provisions?

Employers must also take note that only the wage component of legislation was amended. Other provisions with reference to leave, working hours, deductions, overtime, housing, etc. still apply as applicable to your industry. Also, if your industry’s set minimum wage is higher than the national minimum wage, you must pay the higher wage.

Please contact us for advise in this regard, or if you require legal assistance in this matter. We are available 24/7.