The minimum wage rates in the hospitality sector have been increased with effect from 1 July 2018. The minimum rates are still below the National Minimum Wage (NMW) which is expected to be implemented during the course of 2018. How will employers be affected?
The minimum in the Hospitality Sector have been increased, with effect from 1 July 2018, to the following:
Employers with 10 or less employees:
Monthly rate: R 3384.71
Weekly rate: R 781.14
Hourly rate: R 17.34
Employers with more than 10 employees:
Monthly rate: R 3772.65
Weekly rate: R 870.62
Hourly rate: R 19.35
These increases (of 6%) are only on minimum wage rates. Higher earners therefore do not necessarily have to receive the same percentage increase.
The increases do not apply in areas that are governed by bargaining council agreements, for example the Bargaining Council for the Restaurant, Catering & Allied Trades that applies in Johannesburg and certain surrounding areas, and the Bargaining Council for the Tearoom, Restaurant & Catering Trade in Pretoria.
Impact of the National Minimum Wage (NMW)
Employers must bear in mind that the new minimum rates mentioned above, are still be below the NMW of R20 per hour that is likely to be implemented during the course of 2018. Once the NMW is implemented, employers in the Hospitality Sector will have to comply with the NMW. Employers are advised to do their planning accordingly.