Employment and Labour Minister Nomakhosazana Meth has announced an increase to the National Minimum Wage (NMW) for 2025. The 2025 NMW will increase from R27.58 to R28.79 per ordinary hour worked
South Africa introduced the NMW Act in 2019 which mandates a minimum hourly wage for all workers. The NMW is reviewed annually and increases on 1 March.
The 4.2% increase for 2025 will be legally binding from 1 March 2025. The Labour department warned that any violations of the NMW Act could result in fines.
The NMW applies to all workers, including vulnerable sectors like farm and domestic workers (aligned with the NMW since 2022). No employee should be paid below this minimum.
It's important to note that NMW cannot be varied by contract, collective agreement, or law, and unilaterally altering working hours or employment conditions to implement the NMW constitutes an unfair labour practice.
Exceptions to the NMW
Workers on expanded public works programmes will receive a minimum wage increase to R15.83 from R15.16 per hour.
Learners under learnership agreements (section 17 of the Skills Development Act, 1998) will receive allowances as detailed in the latest government gazette, available on the Department of Employment and Labour website (www.labour.gov.za).
Comprehensive sectoral determination tables for areas, rates, and work categories in the Contract Cleaning and Wholesale and Retail sectors are also available on the website.
Exclusions and Inclusions
The NMW Act applies to all workers and employers except members of the South African National Defence Force, the National Intelligence Agency, and the South African Secret Service.
Volunteers, defined as individuals performing work without remuneration, are also excluded from the NMW legislation.
The NMW does not apply to a volunteer, who is a person who performs work for another person and who does not receive or is not entitled to receive, any remuneration for his or her service.
The NMW rate also excludes allowances (transport, tools, food, accommodation), payments in kind (board, lodging), tips, bonuses, and gifts.
“We are committed to the implementation of social protection initiatives and wage increases, such as the introduction and implementation of the National Minimum Wage, as this ensures that workers receive their dues and are not exploited for the services they render. Every employer may not pay wages that are below the minimum wage,” concluded Minister Meth.
