Legal updates and opinions
News / News
Regulations on national minimum wage exemptions
By: Jacques van Wyk, Director and Andre Van Heerden, Senior Associate and Yusha Davidson, Candidate Attorney
The National Minimum Wage Bill (“the NMW Bill”), which was published on 17 November 2017, provides, among others, that the new national minimum wage will be:
- Subject to (b), R20 per each ordinary hour for all workers with effect of 1 May 2018′
- Despite (a),
- Farm workers are entitled to a minimum wage of R18 per hour from 1 May;
- Domestic workers are entitled to a minimum of R15 per hour from 1 May 2018;
- Workers employed on an expanded public works programme are entitled to a minimum wage of R11 per hour from 1 May 2018; and
- Workers who concluded learnership agreements contemplated in section 17 of the Skills Development Act, 1998 are entitled to allowances as specified in schedule 2 to the NMW Bill.
The calculation of the minimum wage will exclude:
- Any payments made to enable a worker to work including any transport, equipment, tool, food or accommodation allowance;
- Any payment in kind including board or accommodation;
- Gratuities including bonuses, tips or grifts; and
- Any prescribed category of payment.
It is contemplated that the minimum wage will be reviewed on an annual basis.
Section 15 of the NMW Bill provides, further, that an employer or employer’s organisation may apply for an exemption. An exemption granted in terms of the section must specify the period for which it is granted, which may not be longer than one year, the wage that the employer is required to pay the workers and any other relevant condition.
Section 16 of the NMW Bill, in turn, provides that the Minister of Labour may make regulations relating to such exemptions. On 7 February 2018, the Department of Labour announced that they were finalising the drafting of exemption regulations. The regulations will include the procedure for obtaining exemptions, the information to be submitted with an exemption application, the obligation on employers to consult with employees or their trade unions on exemption applications, the criteria for evaluating exemptions, the period within which an application must be made, the period within which a decision on an exemption application must be made and any other matter which may be prescribed.
Latest News
Housing consumer rights headed in the right direction
Assisted by Alexi Andropoulos, Candidate Attorney On Monday, 27 January 2025, while global news headlines flooded with the Expropriation Bill [...]
Expropriation Act: Deconstructed and Demystified
President Cyril Ramaphosa signed the Expropriation Bill into law on 23 January 2025. The newly assented to Expropriation Act No. [...]
Breaking News – Supreme Court of Appeal Rules on Voting Rights of Post-Commencement Creditors in Business Rescue in Landmark Judgment
The Supreme Court of Appeal (SCA) in Mashwayi Projects (Pty) Ltd v Wescoal Mining (Pty) Ltd has delivered a significant [...]
Key Updates to the Code of Good Practice on Dismissal: A Comparison of the 2025 Draft and the Original Framework
On 22 January 2025, the Department of Employment and Labour issued a draft update to the Code of Good [...]
Are CCMA and Bargaining Council Subpoenas Meeting Legal Standards? A Closer Look at Substantive Compliance
and Rekgopetše Pula, Candidate Attorney Since inception, the issuance of subpoenas by the Commission for Conciliation, Mediation and Arbitration [...]
Privacy. Who is looking after the children?
As we celebrate International Privacy Day on 28 January 2025, we are called to look inward and ask how the [...]
