The Congress of South African Trade Unions (COSATU) is pleased with the announcement by the Minister for Employment and Labour, Thulas Nxesi, that National Minimum Wage (NMW) will be increased from R25.42 to R27.58 from 01 March 2024.
This is a positive increase of 8.5% or inflation plus 3%. The Federation had tabled this proposal to the NMW Commission in 2023 and is very pleased this progressive proposal will now be implemented.
“This increase helps protect the value of the NMW and workers’ ability to take care of their families from inflation. It will inject badly needed stimulus into the economy spurring growth and helping to sustain and create jobs. It will provide relief to more than six million workers earning within the NMW range. Workers in the agricultural, domestic, construction, retail, hospitality, transport, security, and cleaning sectors will benefit the most.”
In a statement on Saturday, the Department of Employment and Labour said the new NMW will come into effect from 1 March 2024.
“The workers employed on an expanded public works programme are entitled to a minimum wage of R15,16 per hour [up] from R13,97. Workers who have concluded learnership agreements contemplated in section 17 of the Skills Development Act, 1998, are entitled to the allowances as determined in the latest government schedule,” the department said.
The schedule of learnerships, sectoral determinations of Contract Cleaning, Wholesale and Retail sector employees will be published on the department’s website – www.labour.gov.za
The Act applies to all workers and their employers except members of the South African National Defence Force, the National Intelligence Agency, and the South African Secret Service.
The act does not apply to a volunteer, who is a person who performs work for another person and who does not receive or is not entitled to receive, any remuneration for his or her service.
The NMW is the minimum amount of pay that an employer is legally required to remunerate employees for work done.
The amount does not include payment of allowances (such as transport, tools, food or accommodation) payments in kind (board or lodging), tips, bonuses and gifts among others.
The National Minimum Wage is the floor level below which no employee should be paid.