Recommended national minimum wage increaseThe National Minimum Wage Commission (Commission) recently published a report with recommendations on the annual review of the national minimum wage for 2021. This is in line with the Commission's overall mandate under section 6 of the National Minimum Wage Act 9 of 2018 (NMWA). © Rabia Elif Aksoy – 123RF.com The Commission's report highlights that the NMWA was introduced to ensure more equitable pay structures for employees. This means that there will be an increase in costs for employers but this must be viewed against the broader benefit in society of more equitable workplaces and remuneration systems. Employers who cannot afford to pay the national minimum wage to employees remain entitled to apply for an exemption under the NMWA. In determining the annual adjustment of the national minimum wage, the Commission is required to consider the following criteria:
The main recommendations made by the majority of the Commission are as follows: Following this report, the Commission has invited any interested parties to make written representations to the Directorate of the Commission by 20 December 2020. The national minimum wage figures as they currently stand are:
About the authorKirsten Eiser, Partner and Shane Johnson, Professional Support Lawyer at Webber Wentzel |