McCarthy Attorneys Inc

The National Minimum Wage Act, 2018

The National Minimum Wage Act comes into effect on the 1st January 2019.

The new minimum wage rate, which is applicable from the 1st of January 2019, is now R20 per hour (R3500 per month).

To mitigate the impact of the introduction of the National Minimum Wage on vulnerable sectors, farm workers and domestic workers were not included in the initial phasing in of the R20 hourly rate. Workers in these two categories are to be paid a minimum wage of R18 per hour for farm workers (including domestic workers and security guards employed on farms), and R15 per hour for domestic workers who are not employed on farms. Workers in these categories will be phased into the full National Minimum Wage within two years.

In order to comply with the Act, employers may not deduct for any contributions which may be made to an employee’s transport, food, accommodation or gratuities, unless specified otherwise in a sectorial determination.

This wage applies to all workers: casual, temporary, permanent or fixed term.

If you have any questions about the National Minimum Wage Act, please contact us on (033) 266 6170 or ad***@ma****.za.