The Department of Employment and Labour announced, on 4 February 2025, that the National Minimum Wage (NMW) will increase from R27.58 to R28.79 per ordinary hour of work, as of 1 March 2025 , an increase of roughly 4.4%, which is not far from the 2025 inflation rate, forecast at 4.5%.
This increase applies to farm workers and domestic workers who, until 2022, had a differentiated NWM. However, the increase does not apply to workers employed on an expanded public works programme. These employees will see an increase in their minimum wage to R15.83 per ordinary hour worked from R15.16 in 2024.
Workers who have concluded learnership agreements in terms of section 17 of the Skills Development Act, 1998 will be entitled to the minimum weekly allowances listed in Schedule 2 of the National Minimum Wage Act, 2018.
The minimum wages within the contract cleaning sector and the wholesale and retail sector, are also set to increase, as per the Sectoral Determinations for these sectors.
These increases came about as a result of the annual review process by the National Minimum Wage Commission, whose mandate is to make recommendations to the Minister of Employment and Labour on what increases should be made each year.
In terms of the National Minimum Wage Act, 2018 (Act), employers may not pay workers wages that fall below the abovementioned increased wage thresholds. Section 4(6) of the Act states that, “payment of a National Minimum wage cannot be waived, and the National minimum Wage takes precedence over any contrary provision in any contract, collective agreement, sectorial determination or law, except a law amending this Act.” Effectively, employers and employees cannot contract out of the rights and obligations set out in the Act, which Act applies to all employers and employees, except members of the South African National Defence Force, the National Intelligence Agency and the South African Secret Service.
Be that as it may, section 15(1) of the Act does make provision for exemptions from the payment of the NMW, in certain circumstances. In order to qualify for such exemptions, the employer must make a formal application to the Department of Employment and Labour.
According to section 76A(1) of the Basic Condition of Employment Act, No. 75 of 1997, if an employer fails to comply with the provisions of the Act, a fine may be imposed on such an employer.
If an employer fails to pay the prescribed NMW, the affected worker or employee may institute a claim for failure to pay any amount owing in terms of the Act.Additionally, it is an unfair labour practice for an employer to unilaterally alter wages, hours of work or other conditions of employment in connection with the implementation of the national minimum wage. Where an employer is found to have committed an unfair labour practice in this regard, the employer may be liable to pay an aggrieved employee compensation up to a maximum equivalent to twelve months of that employee’s remuneration.
It is, therefore, important that employers ensure that they keep abreast of adjustments to the NMW, and that they comply accordingly.
Prepared by Associate Director and Head: Labour & Employment Law, Neo Motshegare and Candidate Attorney, Molefi Moseki