We reported in February that Deputy President, Cyril Ramaphosa, had announced a National Minimum Wage for South Africa. This would take effect on 1 May 2018. The NMW would work out to be R20 per hour for a 40-hour week. These are still valid. However, there have been additional developments which have surfaced since then.

The National Minimum Wage is set at R20 per hour and will come into effect on 1 May 2018 – Click to Tweet

National Minimum Wage Panel Recommendations

The National Minimum Wage (NMW) Panel has been tasked with researching the ins-and-outs of the proposed NMW. They have put forward the following recommendations, among others, in terms of the NMW:

  • It has proposed that the NMW applies to people who work at least four hours a day.
  • We previously reported that farm workers and domestic workers would be paid a percentage of the NMW in the first year with this figure increasing in the second year. For the welfare sector and care work, an expert group will consider how to address challenges in this sector.
  • The National Minimum Wage Bill, which is still being considered by Nedlac, outlines that the NMW may not be contracted out in terms of an employment contract or a collective agreement.

Farm workers and domestic workers will be paid a percentage of the #NationalMinimumWage for the first year – Click to Tweet

How Will The National Minimum Wage Be Enforced?

Employers who are found not to comply with the NMW, by a Labour Inspector, will be given 14 days to comply with the National Minimum Wage. If the employer does not comply, he or she will be issued with a compliance order. This order will state that they will have to comply within 14 days. If compliance is still not forthcoming, they will be referred to the Commission for Conciliation, Mediation and Arbitration (CCMA) where the compliance order will be made an Arbitration Award.

The Arbitration Award could consist of the following:

  • Monies owed to the employee,
  • Penalties for not paying the NMW,
  • CCMA costs.

The National Minimum Wage is integral to the concept of Equal Pay for Work of Equal Value as contained in the amendments to the Employment Equity Act (EEA).  Find out more about how this affects you, in your business, at the Global Business Solutions Equal Pay For Work Of Equal Value Workshop, in East London on 20 September. Follow this link for more information.




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