The National Minimum Wage (NMW) in South Africa plays a crucial role in ensuring fair compensation for workers and reducing poverty. It sets a legal baseline below which no employer can pay their employees. As of 1 March 2025, the NMW will be set at R28.79 per hour, applying to all workers, including farmworkers and domestic workers. However, there are exemptions, such as the Expanded Public Works Programme (EPWP), which will have a lower rate of R15.83 per hour.
This article will explore what this means for workers, how wages are calculated, and what steps employees can take if they are not paid according to the law.
Understanding the National Minimum Wage
What is the National Minimum Wage?
The National Minimum Wage Act was introduced to protect workers from being underpaid. The NMW is a legal requirement that sets the lowest hourly wage employers can pay their workers. It ensures that employees receive fair compensation for their labor, helping to close the wage gap and improve living standards.
The latest adjustments mean that, as of 1 March 2025, the minimum wage is set at R28.79 per hour for most workers.
Who Does the Minimum Wage Apply To?
The new wage rate applies to:
- All employees, including those working in agriculture, domestic services, and retail.
- Part-time, full-time, and casual workers, regardless of industry.
- Workers on probation or fixed-term contracts.
However, some categories of workers have a different minimum wage:
- EPWP workers will be paid R15.83 per hour instead of R28.79 per hour.
- Other exceptions may apply to learners or workers in special training programs, based on agreements with the Department of Labour.
Wage Calculations: Daily, Weekly, and Monthly
To help employees and employers understand how much they should earn, let’s break down wage calculations:
Daily Wage Calculation:
- For an 8-hour workday:
R28.79 × 8 = R230.32 - For a 9-hour workday:
R28.79 × 9 = R259.11
Weekly Wage Calculation:
- For a 40-hour workweek (5 days):
R28.79 × 40 = R1151.60 - For a 45-hour workweek (5.5 days):
R28.79 × 45 = R1295.55
Monthly Wage Calculation:
- For a 40-hour workweek:
R1151.60 × 4.333 = R4989.88 - For a 45-hour workweek:
R1295.55 × 4.333 = R5613.62
Important Note: These calculations exclude benefits, allowances, and tips that an employer may provide.
Workers’ Rights Under the National Minimum Wage Act
The South African government enforces the National Minimum Wage Act to protect workers from exploitation. Here’s what employees need to know:
1. What If You Work Less Than 4 Hours a Day?
If you work for less than four hours in a day, your employer must pay you at least four hours’ worth of wages. That means the minimum you should earn is:
R28.79 × 4 = R115.16
Even if your shift is only two or three hours long, your employer must still pay you for four hours at the minimum wage rate.
2. Can Employers Pay Less Than the Minimum Wage?
No. Employers cannot legally pay below the NMW unless they have applied for and received an official exemption from the Department of Employment and Labour. Employers who violate this law may face penalties or fines.
3. What to Do If You Are Paid Less Than the Minimum Wage?
If your employer does not comply with the minimum wage law, you can lodge a complaint with:
- The nearest Department of Employment and Labour office
- The Commission for Conciliation, Mediation, and Arbitration (CCMA)
These institutions can help workers recover unpaid wages and take legal action if necessary.
The Impact of the National Minimum Wage
The implementation of the NMW has significant effects on both workers and businesses in South Africa.
For Workers:
- Provides fair compensation for labor
- Helps reduce poverty and inequality
- Ensures basic income stability
For Businesses:
- Increased labor costs for employers
- Potential need to adjust pricing and operations
- May encourage productivity and efficiency improvements
Although some businesses argue that higher wages increase expenses, research shows that fair wages improve worker morale, productivity, and overall economic growth.
Related: Government-Subsidized Skills Training Programs You Should Know About
The National Minimum Wage of R28.79 per hour, effective 1 March 2025, ensures that workers in South Africa earn a fair wage. Employees should be aware of their rights and report any violations to the Department of Employment and Labour or the CCMA. While businesses may face higher costs, a fair wage is essential for economic stability and reducing poverty.
Are you being paid fairly? Check your wages based on the calculations above and take action if your employer is not complying with the law.
