The National Minimum Wage Hourly Rates have been increased according to the National Minimum Wage Commission Review Report published in Gazette #45649 on 17 Dec 2021 and the National Minimum Wage Act Amendment published in Gazette #45882 on 7 Feb 2022.

The National Minimum Wage Act (NMW Act) was implemented on 1 January 2019 to establish the national minimum wage rate requirements and ensure that they are reviewed annually. Section 4(2) of the NMW Act states that regular reviews are necessary to prevent the minimum wage from falling behind inflation. The National Minimum Wage Commission, composed of various stakeholders, is responsible for conducting these reviews and making recommendations to the Minister.

Section 6 of the NMW Act mandates the Commission to review the national minimum wage annually and propose adjustments to the Minister. The Commission has the authority to recommend an increase, decrease, or no change to the minimum wage rate based on their findings. The final decision is made by the Minister.

When conducting the annual review, the Commission must consider economic factors such as inflation, the cost of living, wage levels, productivity, and the impact on employment. The reduction of wage differentials and inequality, as well as the alleviation of poverty, are also important considerations.

The National Minimum Wage rates have been increased effective from 1 March 2022, as stated in Government Gazette No. 45882 issued on 7 February 2022. The hourly rates for general workers, farm workers, domestic workers, and public works program workers have all been increased. The specific rates can be found in Schedule 1 and Schedule 2 of the National Minimum Wage Act.

Learners, as defined in Section 17 of the Skills Development Act, are also entitled to minimum wages based on their NQF levels and credits earned. The weekly minimum wage rates for learners have been increased for all levels.

It is important to note that the increase in the national minimum wage rate also impacts wage rates set in sectoral determinations that are higher than the minimum wage. These wage rates must be increased proportionally to the adjustment of the national minimum wage.

The National Minimum Wage Act defines a “worker” as any person who works for another and receives payment for their work. This definition includes independent contractors, meaning that they may be entitled to the national minimum wage.

The Act also distinguishes between “wage” and “remuneration.” While “wage” is a subset of “remuneration,” not all amounts classified as “remuneration” qualify as “wage.” The definition of “wage” in the Basic Conditions of Employment Act (BCEA) applies in the context of the National Minimum Wage Act.

For more detailed information on the specific rates and sectoral determinations, refer to the relevant gazettes and the National Minimum Wage Act.