National Minimum Wage Increase - What you need to know

Janet Mc Intosh | SchoemanLaw Inc 

Category: Labour Law 

On 1 January 2018, a landmark piece of legislation, the National Minimum Wage Act 9 of 2018 ("The Act"), came into effect in South Africa. The Act recognises that South Africa has one of the most unequal societies in the world, with huge disparities in income in the national labour market. There is a need to eradicate poverty and inequality in South Africa. To address this inequality, the Act established a national minimum wage, which is reviewed and adjusted annually.  

National Minimum Wage Commission  

The Act established the National Minimum Wage Commission in Section 8. The Commission is tasked with various functions. Most importantly, it must review the national minimum wage and make recommendations for adjustments to the Minister of Employment and Labour. The Commission must also investigate the impact of the national minimum wage on the economy and advise the Minister on measures to reduce income disparities. 

Annual Review  

Section 6 of the Act stipulates that the Commission must review the minimum wage each year and make recommendations to the Minister on any adjustments to the national minimum wage. An amendment to the national minimum wage is effected by publishing a Notice in the Government Gazette. These Notices are normally published in February each year and the amendments to the national minimum wage take effect on 1 March. 

Application of the Act  

The Act applies to all workers and their employers with the following exceptions: 

Members of the South African National Defence Force, the  
Members of the National Intelligence Agency 
Members of the South African Secret Service. 
The Act does not apply to volunteer workers who do not receive payment for their services. 

National Minimum Wage  

Section 4 of the Act stipulates that the national minimum wage is the amount stated in Schedule 1 (to the Act), as adjusted annually in accordance with Section 6. The current national minimum wage is R28.79 for each ordinary hour worked. Farm workers and domestic workers are also entitled to a minimum wage of R28.79 per hour. On 3 February 2026, a Notice was published in the Government Gazette amending the national minimum wage to R30.23, effective from 1 March 2026. This imposes an obligation on employers to ensure that workers' salaries are adjusted in accordance with the legislation. 

Conclusion  

Whether you are an employee or an employer, it is important to be aware of the National Minimum Wage Act and ensure that it is being applied. It is considered an unfair labour practise for an employer to unilaterally alter wages, hours worked and other conditions of employment.  

For further assistance, consult an attorney at SchoemanLaw.  

Janet Mc Intosh | SchoemanLaw Inc   

Attorney: Civil and Commercial Litigation  

https://schoemanlaw.co.za/our-services/labour-law/