Upward goes the National Minimum Wage effective from 1 March 2023
16 March 2023
The minister responsible for employment & labor, Mr TW Nxesi has announced changes to the National Minimum Wage Act, 9 of 2018 (“NMWA”). The stipulated changes will effect an increase in the national minimum wages effective from 1 March 2023.
The national minimum wage is applicable specifically to workers who earn below the earnings threshold, which is now R241 110.59 annually effective from 1 March 2023.
WHAT ARE THE UPDATED NATIONAL MINIMUM WAGES IN RSA?
The national minimum wage for each hour an employee has worked is now updated to R25,42 per hour. It is worth noting that this increase, is exclusively applicable to distinguished sectors. As of 1 March 2023, a particular sector of employees will be positively affected by the update in the
national minimum wage, specifically: domestic workers & farm workers.
Employees working for the expanded public works programs now being entitled to a minimum wage of R13,97 per hour. An interesting development is that employees who have completed a learnership agreement compliant with section 17 of the Skills Development Act, 97 of 1998 are now entitled to allowances as written in the updated schedule 2 of the NMWA.
These updates to the NMWA also cater for upward adjustments in the minimum remuneration in both the Wholesale and Retail Sectors, based on the type of job one executes as well as the Contract Cleaning Sector, which covers the rural and metropolitan jurisdictions.
We, therefore, counsel the affected employees to acquaint themselves with the Sectoral Determination tables to ensure full compliance with the increases set out therein.
WHAT ARE THE LEGAL REPERCUSSIONS IF AN EMPLOYER DOESN’T COMPLY?
Given that employers do not enforce these new regulations as per their prerogative in terms of the NMWA, the employer would either : (i)be issued a compliance order by a Department of Labour inspector and (ii) be fined as stipulated in the BCEA.
The BCEA states that employers who do not remunerate their employees as per the amended hourly wages may be ordered to remunerate the employee either double (i)the sum of the underpayment or (ii)the employee’s monthly wage, whichever sum is greater.
The BCEA proceeds to state that should the employer persist to contravene to pay the national minimum wage to their workers, the fine can be increased thrice as per the calculation of the penalty.
Should you need any legal assistance either as an employer or an employee in calculating the minimum amount of salary you should pay /receive, kindly contact Manzankosi Corporate Legal Consultancy.
Article written by O.Mokoena [Legal Advisor]
