Tag: National minimum wage

Minimum-Wage News

The Minimum Wage Bill and Amendments to Labour Legislation,…

Following recent news that the National Assembly has passed the long awaited Minimum Wage Bill as well as the proposed amendments to the Labour Relations Act and the Basic Conditions of Employment Act, it is important to take note of what these amendments actually mean to you, the Employer:

While it was widely announced that these amendments would come into effect on the 1st of May 2018 after they were initially published for public comment in late 2017, there have been major debates surrounding the specifics of these changes which necessitated a delay.

With the new president getting involved and negotiating strongly for the finalization of these amendments, a major milestone has been reached as the Bills are now passed on for a final round of stakeholder comments before they are passed to the National Council of Provinces. Once this has happened and been finalized, all that would remain is for these proposed amendments to be promulgated into law. Read more “The Minimum Wage Bill and Amendments to Labour Legislation, What you should Know?”

Minimum-Wage News

National Minimum Wage Legislation gets a nod from Cabinet

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 Legislation gets a nod from Cabinet”