Legal updates and opinions
News / News
National minimum wage increases for 2022
Adjusted national minimum wage
Following a mandatory annual review process, the Minister of Employment and Labour announced increases to the national minimum wage for 2022.
With effect from 1 March 2022, the adjusted national minimum wage for each ordinary hour worked is R23.19 (increased from R21.69 in 2021).
Similarly, farmworkers and domestic workers are now entitled to a minimum wage of R23.19 per hour.
The Minister also announced that, as in previous years, exceptions would be made for the following groups:
- Workers employed on an expanded public works programme are entitled to a minimum wage of R12.75 per hour.
- Workers who have concluded learnership agreements (in terms of section 17 of the Skills Development Act 97 of 1998) are entitled to the allowances outlined in Schedule 2 of the National Minimum Wage Act 9 of 2018 (“NMWA”).
It is important to note that the NMWA defines “wage” as “the amount of money paid or payable to a worker in respect of ordinary hours of work or, if they are shorter, the hours a worker ordinarily works in a day or a week”.
Accordingly, this excludes the payment of allowances such as transport, tools, food, payments in kind (including, for example, accommodation), tips, bonuses and gifts.
In terms of section 73A of the Basic Conditions of Employment Act (“BCEA“), an employer’s failure to pay the prescribed national minimum wage will entitle a worker or employee to institute a claim for failure to pay any amount owing in terms of the NMWA. Additionally, section 76A of the BCEA provides that a fine may be imposed on an employer who pays a worker or employee less than the prescribed NMW.
Employers are therefore advised to ensure that they stay abreast of any adjustments to the national minimum wage, and that they comply with any prescribed amounts.
Latest News
New system to be launched to expose non-compliance with the national minimum wage act 9 of 2018
By Jacques van Wyk, Director and Chelsea Roux, Candidate Attorney On 7 March 2019, the Department of Labour ("DOL") released [...]
National Minimum Wage Bill tabled in Parliament
By Jacques van Wyk, Director and Chelsea Roux, Candidate Attorney The Portfolio Committee on Labour met in January 2019 to [...]
Directors’ liability and the competition commission’s corporate leniency policy for cartel contraventions
The Corporate Leniency Policy ("CLP") was published by the Competition Commission in 2004 and remains the principal tool employed by [...]
Trade Marks: USA and Consent Agreements
Anyone who has a commercial presence in the USA or intends entering the US market will know that the United [...]
Employee’s right to privacy
In National Union of Metalworkers of South Africa and other v Rafee NO and others (2017) JOL 37705 (LC), the [...]
Don’t be intimidated into relying on a SARS interpretation note
The SARS states, on its website (www.sars.gov.za), that its "Interpretation Notes are intended to provide guidelines to stakeholders (both internal [...]
