Minimum wage changes expected for South Africa


Labor Unions in SA are in talks to equalize minimum wages in all sectors.

In a statement by Cosatu on Tuesday, 21 June, the trade union said that this will include equalization of wages for workers in the expanded public works and community works programs.

South Africa’s minimum wage was set earlier this year on the 21 March 2022 to the amount of R23.19 for each ordinary hour worked, representing an increase of 6.9% from the minimum wage set in 2021.

In comparison to other years, no specific group of workers were given exceptions, with the minimum wage of domestic workers and farmworkers also set to R23. 19 for each ordinary hour worked as a plan for equalisation.

However, employees of the expanded public works are titled to R12. 75 per hour.

Extended Public Works projects temporarily or permanently hire workers with governments, contractors, or other non-governmental organizations. Due to the temporary nature and the nature of the work, these jobs have historically not provided full wages.

Changes for new minimum wages

Discussions of a new minimum wage in South Africa are set to happen later on this year.

As the 2022 minimum wage was above inflation, the 2023 minimum wage is expected to take into account the increasing fuel price, increasing inflation and a possible fomal basic income grant by government in the national budget.

The National Minimum Wage Commission, considers the following factors when determining the annual adjustment:

  • Inflation, the cost of living, and the need to maintain the value of the minimum wage;
  • Gross domestic product; 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;
  • The likely impact of the recommendation adjustment on employment or the creation of employment.

The National Minimum Wage Act, first declared in 2018, sets a historic precedent for protecting low-wage (vulnerable) workers in South Africa, with inequality in the domestic labor market and huge income inequality which provided a platform to reduce these issues.

 From a legal point of view, it is unfair labor practice for employers to unilaterally change working hours and other employment conditions when implementing the national minimum wage.

 National Minimum Wage is the amount paid for normal working hours and includes allowances (transportation, tools, meals or accommodation, etc.), in-kind benefits (accommodation or meals), tips, bonuses, and gifts.

By Palesa Bacwadi

Main Image;

About Author

Leave A Reply

Follow   Twitter Facebook LinkedIn