From March 1, 2025, a new Minimum Wage Act has been put in place: any employer about to pay below R28.79 per hour should pay more now, as from that date. From the previous 27.58 rand an hour, it has gone up to 28.79. The announcement was made by the Minister of Employment and Labour Nomakhosazana Meth. This increase comes in at 4.4% to improve the earnings of low-wage workers across various industrial sectors.
Who Is Affected by the Minimum Wage Increase
Employees who fall within the ambit of the Basic Conditions of Employment Act (BCEA) have the new wage rates directly applicable to them, including farm and domestic workers. Some employees, however, are paid rates DIFFERENT from these minimum wages. There is, for example, a minimum wage for participants in the Expanded Public Works Programme (EPWP) which has now increased to R15.83 per hour from R15.16, while those who fall under learnership agreements are entitled to allowances set out in terms of the most recent government gazette schedule.
Minimum Wage Increases by Sector
Where a national minimum wage provides a base, a sectoral determination can raise the minimum wage for a given sector. For example, in the wholesale and retail sector minimum hourly wages vary by area and job category. Thus, the minimum hourly wage for worker classifications in urban centres (Area A) is R31.69 per hour, while in rural areas (Area C) it is R28.89. These increases are sectoral determinations that regulate the conditions of employment for workers in these sectors.
Employer Compliance and Obligations
Employers are obliged to comply with the national minimum wage regulations. To pay below the minimum wage is an unfair labour practice, with potential civil consequences. Employers, therefore, must ensure that any allowances paid (for example transport and accommodation) are not taken into account towards the payment of the minimum wage, and, in addition, they will not be allowed to vary the working hours or any other working condition of such an employee, intending to defeat the purpose of the minimum wage law.
Effects of the Law for Workers and Employers
For the worker, this increase in minimum wage is a step to better earnings and living standards; however, some sectors will face hardship as employers adjust to the new wage structure. The employers may also need to make a few changes in payroll and budgeting to accommodate the increased wage, with staying updated on rights and obligations under the new regulations on both sides being beneficial to avoid conflicts.
In short, the minimum wage increase of 2025 reiterates the government’s commitment to promoting the welfare of poor-living workers. Both the employers and employees stand to benefit from familiarizing themselves with the wage rates, sectoral determinations, and amounts outlined above.