Following a recent amendment to Schedules 1 and 2 of the National Minimum Wage Act, the national minimum wage is set to increase from R28.79 per hour to R30.23 per hour, effective Sunday, 1st March 2026.
Designed to safeguard vulnerable workers from unreasonably low wages through the implementation of a baseline across (most) sectors, the minimum rate payable to domestic workers and farmworkers remains aligned with the national minimum wage, namely R30.23.
There, are, however, some sectoral exceptions. For instance, workers employed on expanded public works projects must earn a minimum of R16.62 per hour while those engaged in learnership agreements under the Skills Development Act will receive varying minimum weekly allowances, depending on their skill set.
Importantly, employers in the wholesale and retail sectors are required to increase their minimum rates in line with the new national minimum wage while those in the contract cleaning sector must pay their employees a minimum of R33.27 per hour in metropolitan areas and R30.33 per hour in rural regions, respectively.
For calculation purposes, the national minimum wage excludes allowances paid to enable employees to work, namely transport and equipment costs, payment in kind, such as board or accommodation, and tips, bonuses, and food.
Against the backdrop of evolving employment law requirements and labour-related jurisprudence, it is essential for business owners to comply with all aspects of the prevailing legal framework in order to avoid workplace disputes, unwanted legal action, additional costs, and reputational damage. For businesses and other employers, the increase in the national minimum wage constitutes a material regulatory change requiring immediate compliance review.
For sound legal guidance in labour and employment-related matters, including reviewing entities’ current HR policies and labour practices, negotiating wage labour disputes, and ensuring compliance with evolving B-BBEE requirements, contact our specialist team today.
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