The Minister of Employment and Labour has announced adjustments to the national minimum wage, which will take effect on 1 March 2025.
The national minimum wage will increase from ZAR 27,58 to ZAR 28,79 per ordinary hour worked, effective 1 March 2025. This reflects an increase of approximately 4.38%, which is slightly below the recommendation made by the National Minimum Wage Commission which proposed aligning increases with the Consumer Price Index plus 1.5%.
The following sector-specific minimum wage rates will apply:
- Workers engaged in Expanded Public Works Programmes:
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- Minimum hourly rate will increase from ZAR 15,16 to ZAR 15,83.
- Contract Cleaning services sector (rates vary by region)
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- Metropolitan councils: (City of Cape Town, Greater East Rand Metro, City of Johannesburg, Tshwane, and Nelson Mandela Bay) - employees will be entitled to a minimum hourly rate of ZAR 31.69;
- KwaZulu-Natal: Minimum wage rates must comply with those set out in the Bargaining Council for the Contract Cleaning Service Industry's collective agreement.
- All other areas: employees will be entitled to a minimum hourly rate of ZAR 28,89.
During the public comment period, when parties were allowed to make submissions to the National Minimum Wage Commission to inform the adjustment, trade unions called for stricter enforcement of South Africa's minimum wage legislation. The Congress of South African Trade Unions has urged the Department of Employment and Labour to increase its enforcement powers and strengthen the role of labour inspectors.
In 2024, South Africa saw a rise in labour inspections across various workplaces. Given that the Minister of Employment and Labour has announced plans to increase the number of labour inspectors from 2,000 to 20,000, to enhance the Department's ability to conduct thorough audits and inspections across the country, employers should anticipate greater regulatory scrutiny and enforcement to ensure compliance in 2025.
Employers must ensure compliance with the revised minimum wage rates to mitigate the risk of enforcement action. Businesses should:
- review their wage structures;
- engage in collective bargaining where necessary; and
- prepare for increased labour inspections in 2025 within all aspects of their business.
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.
