The minimum wage is any amount the government allows as a minimum rate that employees must pay their workers at an average amount of hours. This doesn’t include transport provisions, food, living expenses, bonuses, leaves, etc.
Over the years, South Africa has often modified its minimum wage policy. These changes have attempted to bring about an evolution in employment opportunities and average incomes throughout the region.
The Evolution of National Minimum Wage
The minimum wage has been adjusted to achieve economic equality many times over the past few years. Here is a brief timeline;
1. 2019 National Minimum Wage
In 2019, the national minimum wage was set at 20 South African rands (ZAR) for each hour of work provided by the employee. Or ZAR 3,500 per month. Minimum wages were also selected according to the work performed. For example, farmers had a lower minimum wage, at ZAR 18 for each hour worked.
2. 2020 National Minimum Wage
Developments in economic equality paralleled the increase in the national minimum wage by the National Minimum Wage Commission. This increase went up to ZAR 20.76 per hour.
3. 2021 National Minimum Wage
By 2021, the government was attempting to develop economic equality that surpassed the years that had passed. They raise the minimum wage to ZAR 21.69 per hour of work performed. This led to significant changes.
4. 2022 National Minimum Wage
2022 brought with itself progress, unlike anything the market of South Africa had witnessed before. The minimum wage was increased to ZAR 25.42 for each hour an employee worked. This was a 9.62% increase from the previous year.
Things to Note
National wage does have implications for all of the workers throughout South Africa. However, different kinds of workers have other minimum wages. It is essential to keep current with this through official government updates.
Moreover, as of 2022, domestic and farm workers are entitled to the same minimum wage. This doesn’t include the following;
- Any workers employed by the public works program (these workers receive ZAR 13.97 per hour).
- Any workers with leadership agreements in Section 17 of the Skills Development Act 1988. These workers can review the unique list of requirements published by the NMWA.
Why We Need Minimum Wages?
As employers, we need to work with minimum wages, allowing us to maintain workplace equality. Moreover, workers receiving at least the minimum wage tend to feel more motivated to work.
At Global People Strategist, we ensure you meet all international compliance guidelines and allow you to work while understanding an international country’s unique rules and regulations.
Remember that minimum wage is an employee’s fundamental right. It can also help them perform better for you.