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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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This article is not intended to constitute legal advice and is produced for information purposes only and to provide a general understanding of the legal position relating to the topic. It is recommended that advice relating to the specific circumstances of your situation be sought from our attorneys before acting upon the content of this article. This article was written at a particular point in time and accordingly may not always reflect the most recent legal developments, if any, applicable to the relevant topic. Kaplan Blumberg and its partners and/or employees, are not responsible for any consequences which may follow upon any decision taken to act upon the information provided in this article.

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