The Department of Employment and Labour has gazetted a notice calling for inputs on the National Minimum Wage for South Africa, specifically related to possible changes for 2025.
The request for inputs was presented by National Minimum Wage Commission chair Imraan Valodia who invited all interested parties to make submissions by 30 September 2024.
The commission noted that it will publish its annual report later in 2024, in which it will make its formal recommendations to the finance minister regarding possible adjustments to the wage.
Recommendations submitted by the deadline by stakeholders will be considered in these recommendations.
“After the publication of the annual report, a further opportunity will be given to interested parties to submit written representations regarding recommendations included in the report.
“These written representations will be forwarded to the Minister of Employment and Labour together with the Commission’s report,” the chair said.
- Representations should reach the directorate: Employment Standards, Department of Employment and Labour, Private Bag X117, Pretoria, 0001 or be sent to [email protected] by 30 September 2024.
A copy of the submission document can be found in the gazette below:
National Minimum Wage changes
While the NMW commission speaks of “possible” changes to the minimum wage, the group has already committed to hikes each year above inflation at the bare minimum.
In May 2023, the commission gazetted its medium-term NMW targets, which set a three-year goal for the minimum wage and its commitments to meeting it.
Minimum wage increases have historically been done in consultation with various stakeholders and included considerations for the wider economy and the cost of living – the process which has now opened.
While these factors will still be at play, the commission has now explicitly linked the minimum wage to economic indicators.
Specifically, future minimum wage increases will be linked to the consumer price index (CPI) as well as the median wage level in the country.
The minimum wage should increase at rates above inflation, so that wages grow in real terms and don’t lose value, the commission said.
Factors considered by the Commission in the annual adjustment include:
- Inflation;
- The cost of living and the need to retain the value of the minimum wage;
- Wage levels and collective bargaining outcomes;
- Gross Domestic Product (GDP);
- The ability of employers to carry on their businesses successfully;
- The operation of small, medium or micro-enterprises and new enterprises; and
- The impact on employment or the creation of jobs.
Following consultations in 2023, the department hiked the NMW by 9.62% for 2024, taking the going rate to R25.42 (up R2.23 from R23.19 before).
Farm workers and domestic workers earn a minimum in line with the rate, while workers employed in expanded public works programmes are entitled to a lower rate at R13.97 per hour.
According to the department most jobs earning the minimum wage saw their wages increase to R1,144 a week (45 hours) or R4,957 a month (195 hours) at 2024 rates.
Hikes in the NMW are often welcomed by workers and labour unions, while employers and businesses are less enthused, typically pointing to increased operation costs in what is an already a difficult economic environment.
Read: 14% pay hike for domestic workers in South Africa
