Application of the National Minimum Wage

According to the Department of Employment and Labour, the NMW amendment is enforced by law and binding from March 1, 2025. Those who violate the Act are subject to fines.

Determinations of the NMW includes: vulnerable sectors such as farm workers and domestic workers, whom since 2022, were aligned with the NMW rates.

The NMW is the minimum amount of pay that an employer is legally required to remunerate employees for work done and no employee should be paid below the NMW.

The 4.2% increase to the NMW shall apply to all workers and cannot be varied by contract, collective agreement or law.

It is also an unfair labour practice for an employer to unilaterally change hours of work or other conditions of employment in implementing the NMW.

In terms of the new minimum wage, the lowest paid domestic workers, who work 200 hours per month, will earn R5,758. Last year, the same worker would have earned R5,516, representing an increase of R242 in their pay.

For the lowest paid workers who work less hours, at around 160 hours per month, their earnings will now reach R4,606 monthly. Last year, they would have earned R4,412, representing an increase of about R194.

Exceptions to the application of the

National Minimum Wage

Due to the special dispensation under which they are hired workers employed on expanded public works programme are entitled to a minimum wage increase of R15,83 from R15,16 per hour, according to the Department of Employment and Labour.

People who have concluded learnership agreements as contemplated in section 17 of the Skills Development Act, 1998, are entitled to the allowances as determined in the latest government gazette schedule and these will be published on the department website www.labour.gov.za.

Comprehensive tables which explain the adjustments in the Sectoral Determination for areas and rates, work categories for Contract Cleaning Sector, plus those of the Wholesale and Retail Sector are also made available in the Departmental website.

The NMW Act applies to all workers and their employers except members of:

- the South African National Defence Force

- the National Intelligence Agency

- the South African Secret Service.

The NMW is not applicable to a volunteer, a person who performs work for another person and who does not receive or is not entitled, any remuneration for their service.

The amount does not include payment of allowances like transport, tools, food or accommodation; payments in kind such as board or lodge; tips; bonuses; and gifts among others.

"We are committed to the implementation of social protection initiatives and wage increases, such as the introduction and implementation of the National Minimum Wage, as this ensures that workers receive their dues and are not exploited for the services they render. Every employer may not pay wages that are below the minimum wage," Meth said.

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