Employees in South Africa will have cause to smile for a very long time as a result of the country’s newly declared minimum wage. Equal pay is guaranteed for the majority of South Africa’s worker’s thanks to the national minimum wage.
Farm and domestic employees will also receive a 100% increase in pay as part of the new national minimum wage. On March 5th, 2023, the new national minimum wage (NMW) will go into effect.
What does Minimum Wage mean?
The International Labour Organization (ILO) defines a minimum wage as the least amount of compensation that an employer is required to pay wage earners for the job performed during a specific period and that cannot be decreased by a collective agreement or a personal contract.
Gains from a Minimum Wage
The government must establish a new minimum wage that can support the populace given the rising expense of living in the nation. The necessity for a higher minimum wage cannot be overstated given the rising cost of necessities and expenses like transportation and power.
Additionally, local and global variables have an impact on the rise in living expenses and are predicted to get worse soon. The workforce must therefore be compensated with an increased minimum wage.
Several worker groups are given exceptions under the adjustment, as in prior years, including:
- Farmworkers are entitled to a minimum hourly wage of R23.19;
- Domestic workers are entitled to a minimum hourly wage of R23.19;
- Employees of an expanded public works program are entitled to a minimum hourly wage of R12.75; and
- Employees who have completed learnership agreements as described in section 17 of the Skills Development Act, 1998 (Act No. 97 of 1998) are entitled to the allowances listed in Schedule 2.
Employers who unilaterally alter working hours or other employment circumstances in order to implement the NMW are engaging in unfair labor practices. The NMW is the amount payable for ordinary hours of work and excludes payment of allowances (such as transportation, tools, food, or lodging), payments in kind (board or lodging), tips, bonuses, and gifts.
Factors Considered When Implementing the Minimum Wage;
The 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
- The likely impact of the recommended adjustment on employment or the creation of employment.
