The National Minimum Wage (NMW) in South Africa is set to increase by 8.5% from 1 March 2024, following the announcement by the Minister of Employment and Labour, Thulas Nxesi.
The NMW, which came into effect in 2019, is a legal requirement that aims to prevent exploitation by setting a floor below which no employee should be paid.
The new NMW rate for each ordinary hour worked is R27.58, up from R25.42. This is an 8.5% increase. Note that schedule 2 of the NMW also impacts the weekly allowances of Learners who have entered into learnership agreements.
The increase was based on the recommendation of the NMW Commission, which considered various factors, such as inflation, the cost of living, wage levels, productivity, and the like. The Minister adopted the view of eight of the 12 Commissioners, who proposed an increase of CPI plus 3%, based on the CPI of 5.5% in November 2023.
