Yesterday, 8 February 2021, Labour Minister, Thulas Nxesi, gazetted the new minimum wage for South African workers. With effect from 1 March 2021, the national minimum wage will be R21.69 for each ordinary hour.
The national minimum wage, set by the National Minimum Wage Act, 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 (board or lodging), tips, bonuses and gifts. The national minimum wage was for the first time implemented on 1 January 2019.
The gazette also provides exceptions for a number of worker groups, including domestic workers who are generally entitled to a minimum wage of R19.09 per ordinary hour.
Although the national minimum wage commission ideally sought to make this determination applicable to all employees across the country and irrespective of sector, lower minimums for certain sectors, such as domestic workers, have been tabled, to avoid excessive disruption. The commission aims to gradually achieve a single minimum wage rate across all sectors.
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