South Africa’s National Minimum Wage (NMW) is expected to rise again in 2026, following the latest proposal released by the NMW Commission through the Department of Employment and Labour. The Commission has recommended that the next annual increase be based on the formula Consumer Price Index (CPI) + 1.5%, and government has formally opened the proposal for public comment.
The recommendation forms part of the statutory review that takes place each year to ensure that the minimum wage keeps pace with living costs while supporting the country’s lowest-paid workers.
South Africa’s current national minimum wage—R28.79 per hour—came into effect on 1 March 2025 after undergoing the same consultation process now underway for the 2026 adjustment.
Commission’s Recommendation for 2026
In its notice, the NMW Commission proposes that the next adjustment be calculated using CPI + 1.5%, reflecting both inflationary pressures and the need for a modest real increase. This approach is intended to support wage stability for low-income earners while accommodating broader economic conditions.
The Commission notes that the annual review remains essential for protecting vulnerable workers, reducing wage inequality, and ensuring predictability in labour markets. While CPI movements will determine the final hourly rate for 2026, the formula provides a clear guideline ahead of implementation.
Public Participation Now Open
The Department of Employment and Labour has officially invited written submissions on the proposed increase. All stakeholders—including businesses, labour unions, civil society bodies, and individual citizens—are encouraged to provide input.
Submissions may be made via email: [email protected]
Postal Address:
Directorate: Employment Standards
Department of Employment and Labour
Private Bag X117
Pretoria
0001
An online Microsoft Forms questionnaire is also available through the official government notice.
Full details can be accessed here: Official Government Notice:
https://www.gov.za/news/media-statements/employment-and-labour-invites-written-submissions-consideration-2026-national
Furthermore, input received during the comment period will guide the Commission’s final recommendation to the Minister of Employment and Labour. Only once the Minister has concluded this process will the updated minimum wage be published in the Government Gazette, making the new rate legally binding.
Why the Minimum Wage Review Matters
The Commission highlights several central objectives of the annual review:
- protecting low-wage and vulnerable workers
- reducing income inequality
- ensuring wage adjustments remain transparent and predictable
- aligning wages with economic indicators such as inflation
These reviews remain particularly critical in a period marked by rising costs of food, transport, and housing—pressures that disproportionately affect households reliant on minimum-wage income.
What This Means for Workers and Employers
No new hourly wage has been confirmed yet. The CPI + 1.5% formula simply outlines how the increase will be calculated once updated inflation data becomes available.
Workers may anticipate an above-inflation rise in 2026, while employers—especially those in labour-intensive sectors—should begin planning for an upward adjustment early next year. The proposal is expected to stimulate debate between organised labour groups, employer bodies, and policy stakeholders.
Next Steps in the Process
- Public comment period remains open
- Commission will consider all submissions
- Final recommendation submitted to the Minister
- New minimum wage determination published in the Government Gazette
- Effective date likely in early 2026, consistent with past cycles
As South Africa continues to navigate economic uncertainty, the annual minimum wage adjustment remains one of the most important labour policy mechanisms shaping household income, employer costs, and national economic conditions.
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FAQs: Proposed 2026 Minimum Wage Increase in South Africa
No. The 2026 increase has not been finalised. The National Minimum Wage Commission has only recommended a CPI + 1.5% adjustment, which is now open for public comment.
As of 1 March 2025, the national minimum wage is R28.79 per hour, following the adjustment published in the Government Gazette earlier this year.
The NMW Commission proposes that the next increase be calculated using CPI + 1.5%, ensuring wages rise at least slightly above inflation to protect low-income workers.
Written submissions can be sent directly to the Department of Employment and Labour via: [email protected]
Public comments can also be submitted via the online questionnaire linked in the official notice on gov.za.
After the public comment period closes, the Commission reviews all submissions and sends a final recommendation to the Minister of Employment and Labour.
The updated minimum wage will be confirmed only once it appears in the Government Gazette.
Most sectors follow the national formula, but specific categories — such as domestic workers, farm workers, or EPWP participants — may have additional considerations. The Minister confirms sector details during the final determination.
Annual adjustments ensure wages remain aligned with:
rising living costs
inflation (CPI) movements
economic conditions
the need to protect vulnerable low-wage workers
It ensures a real increase, but the exact value depends on inflation at the time the new rate is calculated. The final number will only be known once CPI figures stabilise closer to implementation.
Employers, especially in labour-intensive industries, should anticipate a higher hourly wage cost in 2026 and adjust budgets accordingly. The exact impact depends on the final CPI figure.
The official Department of Employment and Labour notice can be found here: https://www.gov.za/news/media-statements/employment-and-labour-invites-written-submissions-consideration-2026-national
