An increase in the National Minimum Wage (NMW) was announced by the Employment and Labour Minister Thulas Nxesi, on Tuesday, 09 February 2021. According to the minister, each ordinary hour worked has been increased from R20,76 to R21,69 for the year 2021 and this is said to take effect from Monday, 01 March 2021.

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This increase is as per the National Minimum Wage Act of 2018, that came in to effect in 2019 at a standard R20 per hour that employees should be paid in South Africa. In accordance to the ministry’s elaboration, “It is illegal and an unfair labour practice for an employer to unilaterally alter hours of work or other conditions of employment in implementing the NMW. The NMW is the amount payable for the ordinary hours of work and does not include payment of allowances (such as transport, tools, food or accommodation) payments in kind (board or lodging), tips, bonuses and gifts.”

The NMW Act is administered buy a commission that annually makes recommendations that pertain to the quality of the increase of the NMW. The recent recommendations are as follows:

– The National Minimum Wage will increase by 4.5% (inflation of 3% plus 1.5%) to R21.69 per hour.

– Farmworkers will be increased from 90% to 100% of the National Minimum Wage. 

– Domestic workers will be increased from 75% to 88% of the National Minimum Wage. In other words, they will receive R19.09 per hour.

In response to the announcement by the Ministry, The Congress of South African Trade Unions (COSATU), has welcomed the recommendation that domestic workers will equalise the NMW in 2022. “These increases will mean extra money in the pockets of the most oppressed and destitute workers.  This will enhance their spending power and help them cope with the rising cost of living, and in the process contributing to economic stimulation.” Said COSATU’s National Spokesperson Sizwe Pamla.

The Federation is, however, disappointed that the Expanded Public and Community Works Programme (EPWP) employees will this year not see an increase. COSATU says this a missed opportunity by both the Commission and Government to lessen the gap that exists for employees in that sector. This is as the EPWP remain on its 55% trajectory as per the 2020 recommendations.

-The VIP Team

-COSATU

-Employment and Labour Ministry