Starting 1 March 2025, the National Minimum Wage (NMW) is getting a boost to R28,79 per hour, which is about a 4.4% increase from the current rate of R27,58 per hour. This is a significant change that will affect most sectors, though there are a few exceptions.
Farmworkers and domestic workers will be paid the same rate as the new NMW, so they’ll also earn R28,79 per hour. However, there are some important exceptions to keep in mind. Workers in the Expanded Public Works Programme (EPWP) will continue earning R15,83 per hour, which is lower than the new NMW rate. Additionally, those on learnerships will follow a separate wage schedule that’s outlined in the Government Gazette, so they won’t be impacted by the new standard rate directly.
If you’re working in specific sectors, there are more changes coming too. Employers in the Wholesale and Retail Sector (SD9) will need to increase wages, starting from R28,79 per hour for the lowest-paid jobs, but depending on the role, some positions will have a higher minimum wage. Similarly, in the Contract Cleaning Sector (SD1), employees working in metropolitan areas will earn a minimum of R31,69 per hour, while those working in more rural areas will earn R28,79 per hour, the same as the new NMW.
It’s important to note that the NMW doesn’t cover all types of pay. The new wage rate does not include allowances like transport, equipment, or anything provided to employees to help them do their job. It also doesn’t cover things like tips, bonuses, or payment in kind (like accommodation or food). So, if your employer offers those kinds of benefits, they’re not included in the NMW increase, but they may still be part of your total pay package.
Employers who feel that the new NMW will cause them financial hardship can apply for an exemption from the NMW through the National Minimum Wage Exemption System. This system is available online at https://nmw.labour.gov.za or at any Department of Employment and Labour office across the country. However, exemptions are not automatic, and employers must meet certain criteria to qualify.
All employers are urged to review their payment systems and make sure they’re up to date with the new rates. They should also check out the Government Gazette for detailed, sector-specific information, including the new rates for different job categories. It’s crucial that businesses get these changes right to avoid any penalties, and employees should be aware of the new rates to ensure they’re being paid correctly. This wage increase is a step towards improving pay for workers across the country, but it’s important to stay informed about how it applies to your specific sector or job.