Government announces new National Minimum Wage rate

© Rabia Elif Aksoy – 123RF.com

In terms of a notice published in the Government Gazette and signed by Employment and Labour Minister Thulas Nxesi, the new rate will be applicable on 1 March 2020.

The new amendment to the NMW is in line with the Basic Conditions of Employment Act, which allows for an annual review.

In terms of the new determination, farmworkers are entitled to a minimum wage of R18.68 per hour. Domestic workers are entitled to a minimum wage of R15.57 per hour. Workers employed on an expanded public works programme will receive a minimum wage of R11.42 per hour.

“The National Minimum Wage is the floor level below which no employee should be paid, and this does not include any other allowances,” the department said in a statement.

The NMW came into effect on 01 January 2019 at a rate of R20 per hour.

The NMW apply to all workers, that is, any person who works for another person and who receives or is entitled to receive any payment for that work.

For workers who still earn below the NMW level, legislation provided for a transition until all employers are subjected to the NMW.