Changes in the national minimum wage regulations

IOL News writes that Minister of Employment and Labour Thulas Nxesi earlier this month announced a new National Minimum Wage (NMW) determination from R25,42 to R27,58 for each ordinary hour worked. With adjustments set to impact businesses and workers nationwide, here’s everything you need to know about the impending changes.

Key highlights of the New Minimum wages rates
Contract Cleaning Sector

In the Contract Cleaning Sector, minimum hourly rates will undergo adjustments across various areas.

In Area A Metropolitan Councils, the minimum hourly rate for employees in this sector will be R30.35, whereas in other parts of the country, it will be R27.67 per hour. Additionally, all areas in KwaZulu-Natal are subject to collective agreements within the Bargaining Council for the Contract Cleaning Service Industry (BCCCI).

Wholesale and Retail Sector
Minimum wages in the wholesale and retail sector will fluctuate, depending on job categories and geographical locations. In Metropolitan and Local Municipality areas, rates will range from R27.58 to R73.73 per hour, depending on the specific job category.

National Minimum Wage change
The national minimum wage is set to rise to R27.58 per ordinary hour worked, signifying a significant adjustment in labour compensation across the country. Farm workers, domestic workers, and employees engaged in Expanded Public Works Programme labour will all witness an increase to R27.58 per hour.

Learnership Agreements
Workers who are involved in learnership agreements will also experience adjustments in their allowances. The minimum allowance per week will vary from R415.07 to R2421.13, depending on the level of their National Qualifications Framework (NQF) and the credits they have earned.

As the announcement sparked fierce debate nationwide, stakeholders from various sectors voiced their perspectives. Some expressed concerns regarding potential financial strains on businesses, while others view it as a long-overdue measure that they hope will uplift marginalised workers. Under the new legislation, employers must adhere to the revised minimum wage rates, which aim to better align with the cost of living and prevailing economic conditions. Non-compliance could result in penalties and legal ramifications. As the deadline approaches, employers are urged to acquaint themselves with the updated wage scales, ensure meticulous documentation and payroll adjustments, and engage in proactive dialogue with employees.

by Yasmine Jacobs

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