ARTICLE
14 November 2019

Minimum Wage Is All The Rage

SI
SWVG Inc.

Contributor

SWVG Inc.
This works out to roughly R3,500.00 per month, depending on the number of hours worked.
South Africa Employment and HR
To print this article, all you need is to be registered or login on Mondaq.com.

On 1 February 2019, the National Minimum Wage Act No 9 of 2018 ("the Act") came into effect.

In terms of the Act, the national minimum wage is now set at a minimum of R20.00 per hour for all South African citizens. This works out to roughly R3,500.00 per month, depending on the number of hours worked.

However, the operation of the Act remains limited for the time being insofar as the farming sector as well as employers of domestic workers are exempted, for a two-year period, from the minimum wage rate of R20.00 prescribed by the Act.

These employers are entitled to pay less than the prescribed minimum wage, being 90% of the national minimum wage per hour in respect of the farming industry and 75% of the national minimum wage per hour in respect of domestic workers.

However, on 1 February 2021, the minimum wage prescribed by the Act will apply to all employers in South Africa (including farmers and domestic workers).

Whilst there has been major uproar relating to the introduction of the minimum wage, with many labour unions claiming that the rate is insufficient for poorer households, this new law is expected to benefit six million workers who currently earn below R3,500.00 per month.

August 12, 2019

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

See More Popular Content From

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More