The National Minimum Wage (NMW) for each ordinary hour worked has been increased from R21.69 ($1.24) to R23.19 ($1.51) for the year 2022 with effect from 01 March 2022.
As in previous years, the adjustment provides exceptions for several worker groups. These groups include farmworkers as they are entitled to a minimum wage of R23.19 per hour and domestic workers are entitled to a minimum wage of R23.19 per hour.
Workers employed on an expanded public works programme are entitled to a minimum wage of R12.75 per hour while workers who have concluded learnership agreements contemplated in section 17 of the Skills Development Act, 1998 (Act No 97 of 1998), are entitled to allowances contained in schedule 2.
“It is illegal and unfair labour practice for an employer to unilaterally change working hours or other employment conditions in order to implement the NMW. The NMW is the amount payable for ordinary hours of work and excludes payment of allowances (such as transportation, tools, food, or lodging), payments in kind (board or lodging), tips, bonuses, and gifts,” the Minister said.
The Act of 2018 requires the NMW Commission to review the rates on an annual basis and make recommendations to the Minister on any changes to the national minimum wage, while also taking into account alternative viewpoints, including those of the general public.
When determining the annual adjustment the Commission considers inflation, the cost of living, and the need to maintain the value of the minimum wage and gross domestic product.
It also considers wage levels and collective bargaining outcomes; productivity; employers' ability to carry on their businesses successfully; the operation of small, medium, or micro-enterprises and new enterprises; and the likely impact of the recommended adjustment on employment or the creation of employment.
“Employees earning more than R224 080.48 per year are exempt from sections 9, 10, 11, 12, 14, 15, 16, and 17(2) and 18(3) of the Basic Conditions of Employment Act (BCEA) as of March 1, 2022.
“These sections protect vulnerable employees by regulating, among other things, working hours, overtime, and compressed schedules. Working time, average hours of work, meals interval, daily and weekly rest periods, pay for work on Sundays, night work, and work on public holidays,” the Minister said. ■