National Minimum Wage update

7th June 2018

National Minimum Wage update

The National Assembly has recently passed three bills namely the National Minimum Wage (NMW) Bill, the Basic Conditions of Employment Amendment Bill and the Labour Relations Amendment Bill.

Stakeholders have one last chance to make written submissions where after these bills will be placed before the National Council of Provinces for concurrence before being signed into law.

Once passed, these laws will have important consequences for employees and employers alike across all sectors. We take this opportunity to provide a basic overview of their key provisions.

The minimum wage will apply to all workers defined as any person who works for another and is entitled to payment either in money of kind. Only employees of the South African Defence Force, the National Intelligence Agency, the South African Secret Service and volunteers are excluded.

The NMW Bill sets a minimum wage of ZAR 20 per ordinary hour worked. This wage will be reviewed within 18 months of the commencement of the NMW Act and will be adjusted within two years of the commencement of the Act.

The Basic Conditions of Employment Amendment Bill incorporates the NMW Act into the basic conditions of employment and the definition of employment law. It will also provide for the payment of a daily wage for employees who work less than four hours a day and who earn below the threshold.
In terms of enforcement:

The significant changes to the Labour Relations Amendment (LRA) made by the LRA Amendment Bill deal with: