Cabinet has approved the draft legislation to implement a National Minimum Wage for South Africa. At present the new proposed National Minimum Wage is set at R 20.00 per hour, which translates to approximately R 3 900.00 per month. For a comparison, the current Minimum Wage for a Domestic Worker is around R 12.42 per hour or R 2 421.90 per month.
While it is unclear what the exemptions would be, working on the assumption that all Sectoral Minimum Wages will have to be increased, this legislation holds the potential to increase unemployment even more. Currently South Africa has an unemployment rate of 27.7% for the third quarter of 2017 and in what is likely to be a repeat of the Farm Workers Minimum Wage which saw a 0.8% increase in unemployment when it was implemented in 2013 over a period which historically shows a decrease in unemployment. Read more “National Minimum Wage gets a Nod from Cabinet”