In a gazette published on Monday evening (7 February), the minister said that the national minimum wage is now R23.19 for each ordinary hour worked. This change will take effect from 1 March 2022.
This represents an increase of 6.9% from the minimum wage set in 2021.
Unlike in previous years, no specific worker groups have been provided exceptions, with the minimum wages for domestic workers and farmworkers now also set at R23.19 for each ordinary hour worked as part of a planned equalisation push. This represents a 21.5% increase for domestic workers.
The National Minimum Wage Act was first proclaimed in 2018, setting a historic precedent in the protection of low-earning (vulnerable) workers in South Africa and providing a platform for reducing inequality and huge disparities in income in the national labour market.
In terms of the law, it is an unfair labour practice for an employer to unilaterally alter hours of work or other conditions of employment in implementing the national minimum wage.
The national minimum wage is the amount payable for the ordinary hours of work and does not include payment of allowances (such as transport, tools, food or accommodation) payments in kind (board or lodging), tips, bonuses and gifts.
The National Minimum Wage Commission considers the following factors when determining the annual adjustment: inflation, the cost of living, and the need to maintain the value of the minimum wage; gross domestic product; wage levels and collective bargaining outcomes; productivity; employers’ ability to carry on their businesses successfully; the operation of small, medium, or micro- enterprises and new enterprises; and the likely impact of the recommendation adjustment on employment or the creation of employment.
Full article in Business Tech
