New national minimum wage announced brings certainty for agriculture sector

From local is lekker to hyper-localisation: Township consumer trends to watch this festive season

Mongezi Mtati

After two years of negotiations at various levels, Deputy President Cyril Ramaphosa announced the long-anticipated national minimum wage. “This brings certainty for agriculture regarding the remuneration levels that will be payable in the next year,” according to Neil Hamman, who chairs Agri SA's Labour Committee.

The new national minimum wage, which will take effect on 1 May 2018, is based on an hourly rate of R20. The agricultural sector will initially have to pay 90% of the said wage, i.e. R18 per hour. The 2018 implementation date is now a year earlier than initially announced.

Agriculture will, as from March this year, start paying R15,39 per hour. This is in light of an 8% increase in minimum wage levels for agriculture announced by the Minister of Labour, which has already brought the sector closer to the wage announced today, said Hamman.

“Agri SA places a high value on the labour force in the agricultural sector. This sector is still afflicted by drought in many parts of the country and various farmers have not yet recovered from the impact thereof. According to Hamman, the sector is also still recovering from the big increase in wage levels introduced in 2013.

“Farmers who are still unable to afford the increase can apply for a section 50 variation,” he said. There will be an opportunity to apply for the variation before the national minimum wage comes into effect in 2018. A variation can only be granted for a period of one year, which can serve as temporary relief.