National Minimum Wage Commission Proposes 2026 Adjustment: Employers Invited to Participate

The National Minimum Wage Commission, chaired by Professor Imraan Valodia, has released its annual report and recommendations for the adjustment of South Africa’s national minimum wage for 2026. This follows a comprehensive review process in line with the National Minimum Wage Act (No. 9 of 2018), which mandates annual evaluation and public consultation to ensure the wage remains a robust tool for reducing poverty and wage inequality.

Key Highlights

• Proposed Adjustment:

  The Commission recommends that the national minimum wage for 2026 be increased by the Consumer Price Index (CPI) plus 1.5%. This recommendation is based on economic indicators, public input, and the need to maintain the real value of the minimum wage.

• Current Wage Context:

  As of March 2025, the national minimum wage stands at R28.79 per hour. Approximately 5.5 million workers are paid at or below this rate, highlighting the importance of compliance and enforcement.

• Sectoral Impact:

  The Commission notes persistent challenges with compliance, especially in agriculture and domestic work. Small, medium, and micro-enterprises (SMMEs) are recognised as particularly vulnerable to wage adjustments, and the Commission encourages targeted relief and support measures.

• Public Participation:

  Employers, employees, and stakeholders are invited to submit written representations regarding the proposed adjustment. Submissions must be sent to the Directorate: Employment Standards, Department of Employment and Labour, Private Bag X117, Pretoria, 0001, or via email to nmwreview@labour.gov.za by 12 January 2026.

Calls to Action for Employers

1. Engage in the Review Process:

   Employers are strongly encouraged to review the Commission’s recommendations and submit their written representations before the deadline. Your input is vital to ensuring that the minimum wage policy balances worker protection with business sustainability.

   
   

2. Assess Business Impact:

   Evaluate how the proposed CPI + 1.5% increase may affect your operations, especially if you are an SMME or operate in sectors with narrow margins. Consider whether you may need to apply for a temporary exemption if you face genuine financial constraints. The Department of Employment and Labour provides an exemption system for qualifying employers

   
   

3. Ensure Compliance:

   The Commission highlights ongoing issues with non-compliance. Employers are reminded of their legal obligations under the National Minimum Wage Act. Enhanced enforcement is expected, and non-compliance may result in penalties.

   
   

4. Participate in Sectoral Dialogue:

   Employers are urged to engage with industry associations and bargaining councils to ensure that sector-specific concerns are represented in the national dialogue. The Commission also recommends that wage adjustments be linked to sectoral economic indicators and profitability

   
   

5. Support Targeted Relief and Incentives:

   Advocate for and utilise available support measures, such as the Employment Tax Incentive (ETI), to help absorb increased labour costs and support youth employment.

Additional Recommendations

• The Commission calls for improved enforcement, transparency in exemption processes, and the publication of exempted employers.

• Employers are encouraged to participate in future focus groups and public hearings to ensure a broad and inclusive stakeholder engagement.

• The Commission urges alignment of wage-setting with broader national goals, including the National Development Plan and Sustainable Development Goals

For further information, access the full report at www.gpwonline.co.za or contact the Department of Employment and Labour.

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