The Department of Employment and Labour have advised that the general National Minimum Wage will increase from R20 per hour to R20,76 as from 1 March 2020. This represents a 3,8% increase off the back of CPI figures. The 3,8% increase also applies to farm workers, domestic workers and expanded public works programme workers who will now be remunerated at a minimum of R18.68, R15.57 and R11.42 respectively. The announcement also includes the new rates applicable to learners on learnerships as well as the Contract Cleaning, Wholesale and Retail Sectors. Click here to download the publication.
We believe that this is a reasonable increase given the current headwinds being experienced in South Africa and the fact that it is linked to CPI reflects a balanced and responsible approach as employers are facing a raft of legislative amendments and greater compliance requirements attached to regulatory amendments and new statutes such as the pending AARTO and POPI legislation as well as amendments to the BCEA and UIF Act.