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
Fairly unlawful or lawfully unfair? Employees and their rights on termination under the LRA and contract
The South African Labour Relations act, 66 of 1995 (LRA) has been in operation and has since the date of [...]
The transferability and enforceability of restraint of trade agreements
Issue Where a business is sold as a going concern do the restraint of trade undertakings contained in employees' contracts [...]
Employees beware: the enforceability of zero-tolerance policies in the workplace
Issues Whether an employee may be dismissed, in the workplace, for testing positive for dagga and the importance of 'zero-tolerance' [...]
Fresh Produce Market Inquiry: What is it all about? Apples, pears, grapes, avocados, tomatoes, onions and more
The Competition Commission (Commission) is set to conduct a market inquiry into the fresh produce market of South Africa (Fresh [...]
Two pots of gold: What you should know about the “two-pot” retirement system
The proposed "two-pot" retirement system would allow people to have the best of both worlds - early access to a [...]
The FAFT, trusts and transparency in South Africa
Over the past 10 years, there has been large-scale domestic and international financial fraud in South Africa. Sometimes, trusts and [...]
