Tag: National Minimum Wage (NMW)

The National Minimum Wage (NMW) in South Africa has risen to R28.79 per hour, effective 1 March 2025. This 4.38% increase from the previous rate of R27.58 reflects the government’s commitment to improving workers' livelihoods. However, it also poses significant challenges for businesses, especially Small and Medium Enterprises (SMEs), which are already grappling with a rising cost of living alongside a sluggish economy.

In a significant move aimed at improving workers' livelihoods across South Africa, the government announced a new minimum wage. This new wage will take effect on 1 March 2025. This change will impact a wide range of industries. Employers must familiarise themselves with the new regulations and ensure compliance.

We are acutely aware of the challenges posed by recent minimum wage increases mandated by the South African government. While the intention behind these increases is to improve the livelihoods of minimum wage earners, the reality is that they often create a complex web of consequences, particularly in industries like contract cleaning.

The Department of Employment and Labour has officially launched the 23rd Annual Commission for Employment Equity (CEE) Report and the Public Register. This year's report, released on June 23, reveals a continued pattern of slow progress in achieving employment equity goals over the past two decades.

New National Minimum Wage (NMW) hourly rates, which will have a significant impact on labour-intensive industries, were published by the Minister of Employment on 21 February 2023, in line with section 6(5) of the National Minimum Wage Act. They will take effect from 1 March 2023.

As you know, the threshold has increased by 7.6%. Upon investigation, it seems that the October Consumer Price Index (CPI) was used to increase the threshold. More significantly, the National Minimum Wage has gone up by 9.6% as well.

By steadfastly sticking to the policy of a mandatory minimum wage, government seems to glorify the demonstrably provable socioeconomic destructive consequences. These will be further exacerbated by the unemployment catastrophe that is unfolding before our eyes.

The past decade has not been easy for small and medium enterprise (SME) owners. GDP growth has been almost non-existent for most of the past ten years, and despite a widely held – and correct – belief that SMEs hold the keys to job creation and economic growth, they’ve largely been left to fend for themselves.

The gender pay gap is holding back African economies from unlocking their true potential. The impact of the COVID-19 pandemic has resulted in widespread job losses globally, disproportionately affecting women more than men. It is more urgent that ever to address the lack of gender equality on the African continent across all spheres of society.

We have been consistent in saying that labour laws and the National Minimum Wage (NMW) are not benefitting the unemployed. In fact, they do the exact opposite. Parliament, as the institution that makes the laws, is failing the unemployed as it is the responsible body that brings out laws and regulations that cause an increase in unemployment.