NMW increase announced

Employment and Labour Minister, Thulas Nxesi, has announced that following a transitional phase, the farm worker sector has been aligned with the NMW rate of R21.69 per hour. Furthermore, the National Minimum Wage (NMW) will increase to R21.69 per hour from 1 March 2021, translating to a 93c incremented increase. The domestic sector will be entitled to R19.09 per hour, and could be expected to be aligned with the NMW. In terms of the NMW Act of 2018, the policy framework is a floor level, below which no employee should be paid. According to the Act, it is illegal and an unfair labour practice for an employer to unilaterally alter hours of work or other conditions of employment in implementing the NMW.

“The NMW is the amount payable for the ordinary hours of work, and does not include payment of allowances such as transport, tools, food or accommodation, payments in kind such as board or lodging, tips, bonuses and gifts. In considering the annual adjustment, the Commission considered factors which included inflation, the cost of living, and the need to retain the value of the minimum wage, gross domestic product, wage levels and collective bargaining outcomes, productivity, ability of employers to carry on their businesses successfully, the operation of small, medium or micro-enterprises and new enterprises, and the likely impact of the recommendation adjustment on employment or the creation of employment,” the Department of Employment and Labour stated.