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Minimum-Wage News

Increase to National Minimum Wage – March 2021

  • 8th Feb 202110th Feb 2021
  • by Eben van Deventer
Eben van Deventer
Eben van Deventer
eben@hrcity.co.za

On the 8th of February 2021, the Minister for Labour and Employment (Thembelani Waltermade Nxesi) announced an increase to the National Minimum Wage as well as the Minimum Wage for the Contract Cleaning Sector. This increase will take effect on the 1st of March 2021.

As per Government Gazette 44136, we can state that the National Minimum Wage shall be increased by 4.5% from the 1st of March 2021 and shall henceforth be as follows for the following listed categories:

  • National Minimum Wage: R 21.76 per hour;
  • Domestic Workers: R 19.09 per hour;
  • Farm Workers: R 21.76 per hour; and
  • Workers in government expanded public works programme: R11.93 per hour.

From the above it is clear that Farm Workers are no longer exempted from the National Minimum Wage as per previous years and now qualify for the same hourly rate as other Employees.

Furthermore, Learnership Allowances have been increased as follows:

NQF LevelCredits already earned by learnerMinimum allowance per week
Levels 1 and 20 – 120R 326.51
121 – 240R 652.99
Level 30 – 120R 326.51
121 – 240R 614.95
241 – 360R 1 006.73
Level 40 – 120R 326.51
121 – 240R 653.05
241 – 360R 1 006.73
361 – 480R 1 469.25
Levels 5 to 80 – 120R 326.51
121 – 240R 707.39
241 – 360R 1 058.41
361 – 480R 1 491.06
481 – 600R 1 904.58
Schedule 2: Learnership Allowances. Section 6(5) of the National Minimum Wage Act, 2019

Minimum Wage – Contract Cleaning Sector (SD1)

As per the previous Year, the Contract Cleaning Sector, governed by Sectoral Determination 1 (SD1) also sees their Minimum Wages increased in terms of the National Minimum Wage Act and shall therefore be as follows:

Area AArea BArea C
Metropolitan Councils: City of Cape Town, Greater East Rand Metro, City of Johannesburg, Tshwane and Nelson Mandela.
Local Council: Emfuleni, Merafong, Mogale City, Metsimaholo, Randfontein, Stellenbosch, Westonaria
All Areas in Kwazulu-Natal
NB: Conditions of employment and minimum wage rates for KwaZulu-Natal areaas shall be subjected to the collective agreement concluded in the Bargaining Council for the Contract Cleaning Service Industry (BCCCI).
In the rest of the Republic of South Africa
Rate per hourRate per hourRate per hour
R 23.87BCCCI rates applyR 21.77
Schedule 2: Contract Cleaning Sector minimum wages as per Sectoral Determination 1

It should also be noted that the conditions of employment in the Contract Cleaning Sector are governed by Sectoral Determination 1 and may differ from those in other sectors.

Minimum Wage – Retail and Wholesale Sector (SD9)

This Year, Government has also included the Wholesale and Retail Sector in the National Minimum Wage increase. This Sector is governed by Sectoral Determination 9 (SD9) and the increase to the rates are as follows:

Area A: Bergrivier, Breede Valley, Buffalo City, Cape Agulhas, Cederberg, City of Cape Town, City of Johannesburg Metropolital Municipality, City of Tshwane, Drakenstein, Ekurhuleni, Emalahleni, Emfuleni, Ethkekwini Metropolitan Unicity, Gamagara, George, Hibiscus Coast, Karoo Hoogland, Kgatelopele, Khara Hais, Knysna, Kunwini, Kouga, Hessequa local authority, Lesedi, Makana, Magnaung, Matzikama, Metsimaholo, Middelburg (Mpumalanga), Midvaal, Mngeni, Mogale, Mosselbaai, Msunduzi, Mtubatuba, Nama Khoi, Nelson Mandela, Nokeng tsa Taemane, Oudtshoorn, Overstrand, Plettenbergbaai, Potchefstroom, Randfontein, Richtersveld, Saldanha Bay, Sol Plaatjie, Stellenbosch, Swartland, Swellendam, Theewaterskloof, Umdoni, uMhlathuze and Witzenberg Metropolitan and Local Municipalities:

For Employees who work 27 Hours or less in a week:

Clause 2
(3)(b)
Clause 2
(3)(a)
Job CategoryRate per hourRate per hour
General Assistant / Trolley CollectorR 21.69R 25.49
Security GuardR 21.69R 25.91
Forklift OperatorR 21.69R 27.68
Driver < 3 500kgR 21.69R 28.24
Merchandiser / Shop Assistant / Checker / Deli AssistantR 23.43R 29.30
CashierR 24.85R 31.07
Driver > 3 501 < 9 000kgR 27.03R 33.78
Clerk / Sales Assistant / Sales person / Block man / BakerR 29.25R 36.56
Driver > 9 001 < 16 000kgR 29.44R 36.78
DisplayerR 30.37R 37.96
Driver > 1 6001kgR 29.44R 36.78
SupervisorR 35.99R 44.99
Trainee ManagerR 38.86R 48.58
Assistant ManagerR 42.33R 52.93
ManagerR 46.40R 58.00
Schedule 2: Wholesale and Retail Minimum wages as per Sectoral Determination 9

For Employees who work more than 27 hours per week as per Clause 2(2):

Job CategoryRate per hour Rate per week Rate per month
General Assistant / Trolley CollectorR 21.69R 976.05R 4 229.22
Security GuardR 21.69R 976.05R 4 229.22
Forklift OperatorR 21.69R 976.05R 4 229.22
Driver < 3 500kgR 21.69R 976.05R 4 229.22
Merchandiser / Shop Assistant / Checker / Deli AssistantR 21.69R 976.05R 4 229.22
CashierR 24.00R 1 080.00R 4 679.64
Driver > 3 501 < 9 000kgR 26.08R 1 173.60R 5 508.33
Clerk / Sales Assistant / Sales person / Block man / BakerR 28.25R 1 271.25R 5 508.33
Driver > 9 001 < 16 000kgR 28.39R 1 277.55R 5 535.62
DisplayerR 29.33R 1 319.85R 5 718.91
Driver > 1 6001kgR 31.20R 1 404.00R 5 535.62
SupervisorR 34.74R 1 563.30R 6 773.78
Trainee ManagerR 37.53R 1 688.85R 7 317.79
Assistant ManagerR 40.85R 1 838.25R 7 965.14
ManagerR 44.80R 2 016.00R 8 735.33
Schedule 2: Wholesale and Retail Minimum wages as per Sectoral Determination 9

Area B: Metropolitan and Local Municipalities not mentioned in Area A:

For Employees who work 27 Hours or less in a week:

Clause 2
(3)(b)
Clause 2
(3)(a)
Job CategoryRate per hourRate per hour
General Assistant / Trolley CollectorR 21.69R 23.81
Security GuardR 21.69R 25.91
Forklift OperatorR 21.69R 23.98
Driver < 3 500kgR 21.69R 24.60
Merchandiser / Shop Assistant / Checker / Deli AssistantR 21.69R 25.90
CashierR 21.69R 27.45
Driver > 3 501 < 9 000kgR 23.53R 29.41
Clerk / Sales Assistant / Sales person / Block man / BakerR 29.25R 36.56
Driver > 9 001 < 16 000kgR 28.15R 35.19
DisplayerR 25.06R 31.33
Driver > 1 6001kgR 30.94R 38.67
SupervisorR 31.45R 39.33
Trainee ManagerR 33.67R 42.08
Assistant ManagerR 37.11R 46.40
ManagerR 40.25R 50.31
Schedule 2: Wholesale and Retail Minimum wages as per Sectoral Determination 9

For Employees who work more than 27 hours per week as per Clause 2(2):

Job CategoryRate per hourRate per week Rate per month
General Assistant / Trolley CollectorR 21.69R 976.05R 4 229.22
Security GuardR 21.69R 976.05R 4 229.22
Forklift OperatorR 21.69R 976.05R 4 229.22
Driver < 3 500kgR 21.69R 976.05R 4 229.22
Merchandiser / Shop Assistant / Checker / Deli AssistantR 21.69R 976.05R 4 229.22
CashierR 21.69R 976.05R 4 229.22
Driver > 3 501 < 9 000kgR 21.69R 976.05R 4 229.22
Clerk / Sales Assistant / Sales person / Block man / BakerR 24.89R 1 120.05R 4 853.18
Driver > 9 001 < 16 000kgR 27.00R 1 215.00R 5 264.60
DisplayerR 24.07R 1 083.15R 4 693.29
Driver > 1 6001kgR 29.68R 1 335.60R 5 787.15
SupervisorR 30.21R 1 359.45R 5 890.50
Trainee ManagerR 32.29R 1 453.05R 6 296.07
Assistant ManagerR 35.57R 1 600.65R 6 935.62
ManagerR 38.57R 1 735.65R 7 520.57
Schedule 2: Wholesale and Retail Minimum wages as per Sectoral Determination 9

It is therefore important that Employers ensure that they have updated their payroll accordingly to comply with the above increases.

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