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
FAQ – opportunities for investors arising from the South African business rescue process
INTRODUCTION The South African business rescue process has created the opportunity for investors (local and foreign) to position themselves in [...]
2018/2019 budget proposals – Tax overview
By: The Werksmans Tax Team INTRODUCTION Despite it being widely expected that this year's Budget would add to the ever-increasing [...]
STATE OF THE NATION ADDRESS
The National Land Audit has recently been made public. This report was primarily phase 2 of a Land Audit that [...]
Automatically unfair dismissals
ISSUE IN DISPUTE If an employee does not adhere to the dress code in the workplace because of his religion, [...]
The Protection from Harassment Act 17 of 2011
The Act provides simple procedures and remedies in addition to those available to employees in terms of other legislation (such [...]
Broad-Based Black Economic Empowerment Commission (“Commission”) finalises its first case
On 23 January 2018, the Commission issued final findings against SAB & T BEE Services (Pty) Ltd ("SAB&T") and Ms [...]
