The National Minimum Wage has been officially raised, as announced by Employment and Labour Minister Thulas Nxesi, who disclosed a new National Minimum Wage (NMW) determination from R25.42 to R27.58 for each ordinary hour worked.
Effective from 1 March 2024, the revised NMW extends to include vulnerable sectors such as farm workers and domestic workers, who have been aligned with NMW rates since 2022.
“However, the workers employed on an expanded public works programme are entitled to a minimum wage of R15,16 per hour from R13,97,” said the Department.
It further added that workers who have concluded learnership agreements contemplated in section 17 of the Skills Development Act, 1998, are entitled to the allowances as determined in the latest government schedule, highlighted by the Department of Employment and Labour.
Moreover, the Department indicated that the schedule of learnerships, and sectoral determinations of Contract Cleaning, Wholesale, and Retail sector employees will be accessible on the department’s website – www.labour.gov.za.
“The Act applies to all workers and their employers except members of the South African National Defence Force, the National Intelligence Agency and the South African Secret Service. The act does not apply to a volunteer, who is a person who performs work for another person and who does not receive or is not entitled to receive, any remuneration for his or her service,” clarified the Department.
The NMW sets the minimum pay an employer must legally remunerate employees for work done. However, it excludes allowances (such as transport, tools, food, or accommodation), payments in kind (board or lodging), tips, bonuses, and gifts among others.
Moreover, the Department underscored that the National Minimum Wage serves as the floor level below which no employee should be paid.
“The NMW first came into implementation in 2019 at a minimum of R20 per hour. The NMW is enforced by law and violations are subject to fines,” added the Department.
With the upcoming implementation of the new National Minimum Wage set for March 2024, the Department noted that after a thorough consultative process with the National Economic Development and Labour Council (Nedlac) stakeholders, Minister Nxesi has announced the appointment of the second National Minimum Wage (NMW) Commission to advise on the setting of the national minimum wage and sectoral determinations.
According to the Department, the inaugural NMW Commission was announced in 2019 by former Labour Minister Mildred Oliphant, and its term ended on 31 January 2024.
“The establishment of NMWC followed the implementation of the new policy framework of NMW in 2019. The NMW Commission replaced the Employment Conditions Commission (ECC) that has been presiding over the setting of Sectoral Determinations (SDs),” stated the Department.
Academic and economist Professor Imraan Valodia has been appointed as the Chairperson of the new Commission. Valodia is one of the four independent candidates in the 13-member Commission. He replaces Professor Adriaan van der Walt.
Furthermore, the appointment of the new Commission complies with the NMW Act and provides for the establishment of a National Minimum Wage Commission. The appointments include independent experts, representatives of organised business, organised community and organised labour respectively to serve on the NMW Commission.
Members of the new Commission will serve for five years. It is structured as follows:
- Business representatives: Kaizer Moyane (BUSA), Jonathan Goldberg (BUSA), Jahni de Villiers (BUSA).
- Labour representatives: Edward Thobejane (NACTU), Solly Phetoe (COSATU), Trenton Esley (FEDUSA).
- Community representatives: Isobel Frye (Financial Sector Coalition Campaign), Conti Matlakala (Women’s National Coalition), Tumelo Zwane (South African Youth Council).
- Independent experts: Professor Valodia from Wits University, Dr Neva Makgetla from Trade & Industrial Policy Strategies (TIPS), Mamokete Lijane from Standard Bank, and Gavin Hartford from Stakeholder Solutions.
Some of the functions of the Commission include the following:
- Reviewing the NMW and recommending its adjustment.
- Investigating and reporting to the Minister on the impact of the NMW on the economy and collective bargaining.
- Investigating income differentials and advising the Minister on measures to reduce income differentials.
- Setting medium-term targets for the national minimum wage within three years of the commencement of this Act.
- Advising the Minister on sectoral determinations.
- Advising the Minister on any matter concerning basic conditions of employment.
The purpose of the NMW Act is to advance economic development and social justice by:
- Improving the wages of the lowest-paid workers.
- Protecting the workers from unreasonably low wages.
- Preserving the value of the national minimum wage.
- Promote collective bargaining.
- Supporting economic policy.
The members of the Commission are appointed on a part-time basis and terms and conditions are prescribed by the Minister in consultation with the Minister of Finance
With the new National Minimum Wage to be implemented, what are your thoughts on the above? Be sure to share your views in the comment section below.
