The National Minimum Wage Commission has proposed the national minimum wage (NMW) hike for 2025, recommending an increase of CPI +1.5%, according to a statement from the Department of Employment and Labour.
This is after the commission invited written representations on potential adjustments to South Africa’s NMW for 2025.
On December 18, 2024, the NMW Commission published a report in the government gazette which outlined the commission's recommendations for the annual review of the national minimum wage as well as an invitation for the public to submit their written representations.
The deadline for the written representation is January 14, 2025.
According to the department, the Consumer Price Index (CPI), which measures changes in the prices paid by consumers for goods and services over time, is a key factor in these considerations.
For November 2024, CPI in the country was at 2,9%, a slight hike from the 2,8% in the previous month.
"It is important to take note that the rate of inflation that will be implemented will be the inflation rate six weeks before the 1st of March (i.e. December CPI published in January) which is the date that the new minimum wage comes into effect," the department said.
This latest invitation for input follows a similar request made in August 2024.
The process is conducted in accordance with section 6(2) of the National Minimum Wage Act (NMWA), No. 9 of 2018, according to the Department of Employment and Labour.
The National Minimum Wage Commission is made up of representatives from organised labour, business, community, and experts in labour market and employment conditions.
The department said: "Under the NMWA, the Commission is responsible for annually reviewing and recommending adjustments to the national minimum wage."
"It also investigates and reports annually to the Minister on the impact of the national minimum wage on the economy, collective bargaining, and income differentials, making this information available to the public."
As of 2024, the NMW in the country is R27.58 per hour and applies to all workers, including farm workers and domestic workers.
However, workers employed under the Expanded Public Works Programme (EPWP) have a minimum wage of R15.16 per hour.
The NMW is a representation of the lowest remuneration that employers are legally permitted to pay their employees for each ordinary hour worked and it is illegal for employers to pay their employees anything less than the NWM threshold.
The commission considers various factors in its annual adjustment of the minimum wage including:
- inflation
- the cost of living
- the need to maintain the value of the minimum wage
- wage levels
- outcomes of collective bargaining
- gross domestic product (GDP)
- the ability of employers to sustain their businesses
- the operation of small, medium, or micro-enterprises and new enterprises
- the impact on employment or job creation.
The new rate of adjustment will be announced by the Minister of Employment and Labour in February 2025 and it will take effect from March 1, 2025.
Requests for inputs should reach the directorate: Employment Standards, Department of Employment and Labour, Private Bag X117, Pretoria, 0001 or be sent to [email protected]
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