Increase to National Minimum Wage - March 2023

On the 21st of February 2023, the Minister for Labour and Employment (Thembelani Waltermade Nxesi) announced an increase to the National Minimum Wage as well as the Minimum Wage for the Contract Cleaning Sector in terms of the National Minimum Wage Act, 2018. This increase will take effect on the 1st of March 2023.

As per Government Notice No. 3069 in Government Gazette No. 48094 of 21 February 2023, we can state that the National Minimum Wage shall be increased by ~9.6% from the 1st of March 2023. The new National Minimum Wage, including Domestic and Farm Workers, will therefore be as follows:

1. National Minimum Wage: R 25.42 per hour (Including Domestic- and Farm Workers);
2. Workers in government expanded public works programme: R13.97 per hour.

Furthermore, Learnership Allowances have been increased as follows:

Minimum Wage – Contract Cleaning Sector (SD1)

As per the previous Year, the Contract Cleaning Sector, governed by Sectoral Determination 1 (SD1) also sees their Minimum Wages increased in terms of the National Minimum Wage Act, 2018 and shall therefore be as follows:

Schedule 2: Contract Cleaning Sector minimum wages as per Sectoral Determination 1

It should also be noted that the conditions of employment in the Contract Cleaning Sector are governed by Sectoral Determination 1 and may differ from those in other sectors.

Minimum Wage – Retail and Wholesale Sector (SD9)

This Year, Government has also included the Wholesale and Retail Sector in the National Minimum Wage increase. This Sector is governed by Sectoral Determination 9 (SD9) and the increase to the rates are as follows:

Area A: Bergrivier, Breede Valley, Buffalo City, Cape Agulhas, Cederberg, City of Cape Town, City of Johannesburg Metropolital Municipality, City of Tshwane, Drakenstein, Ekurhuleni, Emalahleni, Emfuleni, Ethkekwini Metropolitan Unicity, Gamagara, George, Hibiscus Coast, Karoo Hoogland, Kgatelopele, Khara Hais, Knysna, Kunwini, Kouga, Hessequa local authority, Lesedi, Makana, Magnaung, Matzikama, Metsimaholo, Middelburg (Mpumalanga), Midvaal, Mngeni, Mogale, Mosselbaai, Msunduzi, Mtubatuba, Nama Khoi, Nelson Mandela, Nokeng tsa Taemane, Oudtshoorn, Overstrand, Plettenbergbaai, Potchefstroom, Randfontein, Richtersveld, Saldanha Bay, Sol Plaatjie, Stellenbosch, Swartland, Swellendam, Theewaterskloof, Umdoni, uMhlathuze and Witzenberg Metropolitan and Local Municipalities:

For Employees who work 27 Hours or less in a week:

Schedule 2: Wholesale and Retail Minimum wages as per Sectoral Determination 9

For Employees who work more than 27 hours per week as per Clause 2(2):

Schedule 2: Wholesale and Retail Minimum wages as per Sectoral Determination 9

Area B: Metropolitan and Local Municipalities not mentioned in Area A:

For Employees who work 27 Hours or less in a week:

Schedule 2: Wholesale and Retail Minimum wages as per Sectoral Determination 9

For Employees who work more than 27 hours per week as per Clause 2(2):

Schedule 2: Wholesale and Retail Minimum wages as per Sectoral Determination 9

It is therefore important that Employers ensure that they have updated their payroll accordingly to comply with the above increases.