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New Minimum Wage Increases Effective From 1 March 2021

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New Minimum Wage Increases Effective From 1 March 2021

9th February 2021

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The national minimum wage (NMW), as well as minimum wages in some other sectors, will increase with effect from 1 March 2021.

The minimum wage of R20,76 per hour will increase to R21,69 per hour (an increase of approximately 4,9%). The new minimum sets a new baseline across all sectors, with a few exceptions. 

Exceptions

The exceptions include domestic workers, farm/forestry workers, workers employed in Expanded Public Works Programmes and workers with learnership agreements in terms of the Skills Development Act. These minimum wages will be as follows:

  •   Domestic workers: R19,09 per hour
  •   Farm/forestry workers: R21,69 per hour
  •   Workers employed on Expanded Public Works: R11,93 per hour

Workers with learnership agreements: See schedule in the link to the Government Gazette below.

Increases in other sectors

Employers in SD9: Wholesale and Retail Sector, as well as SD1: Contract Cleaning Sector, will have to increase their minimum rates as well. Details about these minimum wages (as well as the National Minimum Wage) can be found in the Government Gazette (GG) – CLICK HERE

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Are benefits included?

Employers are reminded that the way that they structure a remuneration package is restricted. The NMW excludes allowances that are paid to enable employees to work (such as transport and equipment), or payment in kind (such as board or accommodation), as well as bonuses, tips or food. So, for example, one cannot argue that you pay an employee less than the minimum wage because you contribute to their uniform or provide them with meals.

Exemption

There is provision for employers to apply for exemption. The National Minimum Wage Exemption System is accessible online (CLICK HERE). Alternatively, employers may approach their nearest branch of the Department of Employment and Labour.

Issued by Labourwise

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