NATIONAL MINIMUM WAGE INCREASE

How much should an employer pay their employees? 

The National Minimum Wage (NMW) has undergone an increase as of March 1, 2024, by 8.5%, as was declared by Thulas Nxesi, the Minister of Employment and Labour. Instituted in 2019, the NMW serves as a legal safeguard against exploitation, ensuring that no employee receives compensation below a specified threshold. 

The updated NMW sets the rate for each standard hour worked at R27.58, a notable increase from the previous R25.42. Additionally, Schedule 2 of the NMW affects the weekly allowances of learners engaged in learnership agreements. 

PER HOUR	PER WEEK	PER MONTH	DAILY RATE
R 27.58	R 1 241.10	R 5 378.06	R 206.85

The calculations above are based on a 45-hour work week. 

SCHEDULE 2: Learner Allowances 

Level	PER HOUR	PER WEEK	PER MONTH	DAILY RATE
1	R 9.22	R 415.07	R 1 798.62	R 69.18
2	R 18.45	R 830.09	R 3 597.03	R 138.35
3	R 28.44	R 1 279.76	R 5 545.58	R 213.29
4	R 41.51	R 1 867.73	R 8 093.43	R 311.29

The calculations above are based on a 45-hour work week. 

Can an employer reduce the hourly rate if they cannot afford to pay the current minimum wage? 

No, it is an unfair labour practice for an employer to unilaterally alter hours of work or other conditions of employment in implementing the national minimum wage. The national minimum wage is a legal requirement to ensure that workers are paid a minimum amount for their labour. Employers are obligated to comply with these regulations and pay their employees at least the minimum wage stipulated by law.  

 An employee who works less than four hours on any given day must still be compensated for a minimum of four hours of work for that day. 

If an employer is facing financial difficulties, there are alternative options to consider such as short-time implementation or reduced working hours. We encourage our members to contact their EOHCB representative and get advice and assistance to manage their situation while still meeting their legal obligations to their employees.