To safeguard the income of low-wage earners, in January 2025, the South African government intends to increase the National Minimum Wage (NMW) from R27.58 to R28.79 per hour and effective from March 1, 2025, at an increase of about 4.4\%.
Sector-Specific Alterations
While the general application of the NMW applies mostly, certain sectors are granted specific changes to their national baseline :
- Farm Workers and Domestic Workers: With both these categories now being paid the minimum wage of R28.79, therefore putting them on the same footing with the national standard.
- EPWP: The minimum wage for EPWP workers shall increase from R15.16 to R15.83.
- Learnership Agreement: Certain exemptions contained in the current government gazette will apply to workers subjected to learnership agreements as defined in the Skills Development Act, 1998.
Enforcement & Affirmative Measures
The new minimum wage became the law on March 1, 2025. Every employer must comply with the given procedures; any deviation from which would constitute extreme injustice that may attract punitive fines. The NMW law applies to every worker, even those in vulnerable sectors like agricultural work or domestic work.
It must also be noted that the NMW does not incorporate certain compensations for transport, equipment, food, or accommodations, bonuses, and tips.
Public Participation And Future Adjustments
In the current economic climate, the National Minimum Wage Commission thus recommended the adjustment to be CPI plus 1.5\% so as to try to redeem workers’ purchasing power. Representations from the public on this recommendation were invited in writing until January 14, 2025.
The government claims it is set to review the NMW on an annual basis, depending on the prevailing economic situation and on the cost of living, in the compensation of protecting the livelihood of workers at large in South Africa.
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