Minimum wage increase: Who benefits and who doesn’t?

South Africa’s National Minimum Wage (NMW) will increase this year, rising from R28.79 to R30.23 for each ordinary hour worked.

The adjustment amounts to an increase of R1.44 per hour and will take effect on March 1, applying to most workers nationwide.

The Witness reports that Employment and Labour Minister Nomakhosazana Meth announced the increase yesterday, saying the adjustment would benefit all workers covered by the legislation, including those considered most vulnerable.

“The 1st of March 2026 is the date on which this amendment shall become binding. The R1.44 upward adjustment will benefit all workers, including vulnerable farm workers and domestic workers,” said Meth.

However, workers employed under the Expanded Public Works Programme (EPWP) are excluded from the standard NMW increase.

Due to their employment under a special dispensation, EPWP workers will see their minimum hourly wage rise from R15.16 to R16.62.

Workers who have entered into learnership agreements in terms of section 17 of the Skills Development Act 97 of 1998 are also not covered by the standard NMW rate.

Instead, they are entitled to allowances outlined in Schedule 2, with updated rates to be published on the Department of Employment and Labour’s website.

The NMW is a statutory requirement in South Africa’s labour market and came into effect in 2019.

Employers are legally obligated to pay workers at least the minimum wage per hour, with the wage reviewed and adjusted annually.

Any violations of the act may result in fines enforced by labour inspectors, with enforcement carried out by the Department of Employment and Labour and the Commission for Conciliation, Mediation and Arbitration.

“The NMW is the floor which an employer is legally obligated to remunerate employees for work done. No employee shall be paid below the National Minimum Wage,” the department said.

“It cannot be varied by contract, collective agreement or law; and it is also an unfair labour practice for an employer to unilaterally alter hours of work or other conditions of employment in implementing the NMW.”

The department added that updated rates for sectoral determinations, including the contract cleaning sector and the wholesale and retail sector, are also available on its website.

The NMW applies to all workers and employers except members of the SANDF, the National Intelligence Agency and the South African Secret Service.

It also excludes volunteers who perform work without receiving remuneration.

Allowances such as transport, tools, food or accommodation, as well as payments in kind, tips, bonuses and gifts, are not included when calculating the National Minimum Wage.

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