The Minister of Employment and Labour, has in terms of section 6(5) of the National Minimum Wage Act, No. 9 of 2018, as published under Government Notice No. 11664 of 2 February 2024, in accordance with the schedules hereto, announced the new minimum hourly rate as of the 1st of March 2025 as the date on which this amendment will be binding.
The new National Minimum Wage will be R28,79 for each ordinary hour worked.
Despite the above, are there only 2 exceptions to the announced rate, which are:
(a) Workers employed on an expanded public works programme are entitled to a minimum
wage of R15,83 per hour; and
(b) Workers who have concluded learnership agreements contemplated in section 17 of the Skills Development Act, 1998 (Act No. 97 of 1998), are entitled to the allowances contained in Schedule 2, which are lower than the prescribed National Minimum Wage.
These are the only 2 exceptions, and all other employees will be entitled to a minimum of R28.97 per ordinary hour worked.
Below are some calculations to clarify any uncertainty:
– Weekly rate is based on a 45-hour working week (this excludes lunch break). Rate per week R1 295.55 (R28.79 x 45)
– Monthly rate is based on 4.333 weeks (calculation used as per the BCEA). Rate per month R5 609.73
– This obviously does not include any additional hours (Overtime, Saturday, Sunday and Public Holidays) worked past the 45-hour work week
In terms of the National Minimum Wage Act, Section 5 (Calculation of Wage), does the following not form part of the ordinary hour worked rate (R28.79), and can not be seen as a Cost to the Company to make up the hourly rate:
- Any payment towards transport, equipment, tool, food, or accommodation allowance, unless specified otherwise in a sectoral determination
- Any payment in kind, including board accommodation, unless specified otherwise in a sectoral determination
- Gratitudes, including bonuses, tips, or gifts, and
- Any other prescribed category of payment
Should any employer be uncertain about the National Minimum Wage, or would like to ask us any questions regarding the same, they are welcome to reach out, so that we can make sure you are not found in breach of the law.
Off the Desk of
Gerhard Kotze’
Managing Director
0836986945