New Minimum Wage
On Monday, 8 February 2021, Labour Minister Thulas Nxesi gazetted the new minimum wage for South African workers. The national minimum wage will be R21.69 for each ordinary hour, with effect from 1 March 2021.
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 gazette also provides exceptions for a number of worker groups, including domestic workers who are generally entitled to a minimum wage of R19.09 per ordinary hour.
Although the national minimum wage commission ideally sought to make this determination applicable to all employees across the country and irrespective of sector, lower minimums for certain sectors, such as domestic workers, have been tabled, to avoid excessive disruption. The commission aims to gradually achieve a single minimum rate across all sectors.
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