Prepare for the minimum wage increase affective from 1 March 2023. This is what you need to know. Employers must keep track of time worked by each employee. They must also pay remuneration. (Section 31 (1) (b) and (c) of Basic Conditions of Employment Act 1997.) The Act also regulates the position of ordinary hours of work, overtime, compressed working weeks, averaging of hours of work, meal intervals, and more.
On the 20th of February 2023, minister of Employment and Labour, Thembelani Watlermade Nxesi, signed the amendment of the national minimum wages. This is contained in Schedule 1 and 2 of the National Minimum Wage Act Government Notice 45882.
R25,42 per hour
The national minimum wage will increase to R25,42 for each ordinary hour worked, which includes farm – and domestic workers. An overall increase of approximately 9,62%, up R2.23 from R23.19 before, a bit higher then initially expected. This is equivalent to R4 182. 61 for a person working a 38 hour week; and to R4 959. 09 per month for a person working a 45 hour week.
This also applies to the Wholesale and Retail sector, depending on the job category. The sectoral determinations for these sectors are different and are adjusted as well.
Workers employed in an expanded public works program will be entitled to a lower rate at R13.97 per hour.
Workers with learnership agreements in terms of the are entitled to the allowances as per Schedule 2. (Skills Development Act, 1998 (Act No.97 of 1998) section 17)
Contract Cleaning Sector minimum rates will increase to R27,97 minimum in metropolitan areas and R25,50 in certain rural areas as per Sectoral Determination 1.
Does your employment conditions meet the minimum standards as per the Basic Conditions of Employment Act 1997?
Exemption
The National Minimum Wage Act makes provision for employers to apply for exemptions. This can be done online at https://nmw.labour.gov.za. Employers may approach their nearest branch of the Department of Employment and Labour.
Keep track of time
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