The New National Minimum Wage (NMW) has been Gazetted on Monday 8 February 2021, and came into effect on the 1st of March 2021. The first increased wages are
payeble at the end of March 2021.
The NMW has been increased with 4.5% from R20.76 to R21.69
The agricultural sector received exemption for 2 years and has now been equalised with the minimum wage of 2021. This calculates to a 16,1% increase from R18.68 per hour to R21.69 per hour.
Employers in the agricultural sector should take note that domestic workers on a farm are regarded as farm
workers and must receive the correct wage.
The minimum wages of domestic workers increased from R15.57 per hour to R19.09, a hike of almost 23%. The commission wants the minimum wage for domestic workers – who still, even after the latest increase, earn 12% less than other minimum wage workers – to be exactly the same as the national wage by next year
Apart from house cleaning work, domestic workers also include gardeners, drivers and people who look after children, the aged, sick, frail or disabled in a private household
While domestic workers could see further increases in 2022, members of the National Minimum Wage Commission have warned that a minimum wage increase could lead to further job cuts. Representative said their view as the business representatives on the commission is premised on the need to avoid or minimise negative impacts on jobs in the sectors, especially at a time when the economy is struggling under the weight of multiple factors like Covid-19, credit downgrades and poor growth outlook for the near term.
They added that employers of domestic workers are mostly employees themselves in other sectors. With most sectors already reducing or maintaining salaries, and retrenchments expected to peak, it is reasonable to expect that employers of
domestic workers are going to struggle to either absorb huge wage increases or even keep their employees.
For more inoformation on the New National Minimum Wage phone Fanus 083 308 1227 or Stephan 082 312 2096. (Article compiled by Dynamic Labour Solutions).
