NATIONAL MINIMUM WAGE INCREASE

The Minister of Employment and Labour issued a notice on 4 February 2025 that specifies the National Minimum Wage rate per hour increases across the various categories of workers with effect from 1 March 2025.

An increase of 1,5% above the CPI inflation rate was recommended by the National Minimum Wage Commission towards the end of 2024 and this has been supported by Government. The final increase percentage was based on the rate of inflation six weeks prior to 1 March 2025 (i.e. the December CPI as published in January).

For General workers, the minimum wage rate has been increased by R1.21 per hour (4.4 %) from R27.58 to R28.79 effect from 1 March 2025.

The increases to the other categories of workers effect from 1 March 2025 are as follows:
1. Farmworkers: R28.79 per hour
2. Domestic workers: R28.79 per hour
3. Expanded Public Works Programme Workers: R15.83 per hour

Government Gazette No. 52053 issued by Minister Meth on 4 February 2025 contains additional wage rates that are too detailed to list in this Newsflash, summarised as follows:
1. The weekly wage rates of learners working under learnership agreements contemplated in section 17 of the Skills Development Act have been increased per NQF level by 4,4%.
2. Contract Cleaning Sector hourly rates
3. Wholesale and Retail hourly rates.

Note that it is illegal and an unfair labour practice for an employer to unilaterally change working hours or other employment conditions order to be able implement the NMW minimum hourly wage rates.

Employers with financial difficulties can request a concession for 12 months relief from the Department of Labour.

Lastly, employers are advised to take the Labour Appeals Court Judgement (refer to PAGSA Newsflash 2024-12) into account when calculating ‘wage’ for the purposes of compliance with the National Minimum Wage Act.