News
Increase to National Minimum Wage – March 2021
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 Level | Credits already earned by learner | Minimum allowance per week |
| Levels 1 and 2 | 0 – 120 | R 326.51 |
| 121 – 240 | R 652.99 | |
| Level 3 | 0 – 120 | R 326.51 |
| 121 – 240 | R 614.95 | |
| 241 – 360 | R 1 006.73 | |
| Level 4 | 0 – 120 | R 326.51 |
| 121 – 240 | R 653.05 | |
| 241 – 360 | R 1 006.73 | |
| 361 – 480 | R 1 469.25 | |
| Levels 5 to 8 | 0 – 120 | R 326.51 |
| 121 – 240 | R 707.39 | |
| 241 – 360 | R 1 058.41 | |
| 361 – 480 | R 1 491.06 | |
| 481 – 600 | R 1 904.58 |
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 A | Area B | Area 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 hour | Rate per hour | Rate per hour |
| R 23.87 | BCCCI rates apply | R 21.77 |
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 Category | Rate per hour | Rate per hour |
| General Assistant / Trolley Collector | R 21.69 | R 25.49 |
| Security Guard | R 21.69 | R 25.91 |
| Forklift Operator | R 21.69 | R 27.68 |
| Driver < 3 500kg | R 21.69 | R 28.24 |
| Merchandiser / Shop Assistant / Checker / Deli Assistant | R 23.43 | R 29.30 |
| Cashier | R 24.85 | R 31.07 |
| Driver > 3 501 < 9 000kg | R 27.03 | R 33.78 |
| Clerk / Sales Assistant / Sales person / Block man / Baker | R 29.25 | R 36.56 |
| Driver > 9 001 < 16 000kg | R 29.44 | R 36.78 |
| Displayer | R 30.37 | R 37.96 |
| Driver > 1 6001kg | R 29.44 | R 36.78 |
| Supervisor | R 35.99 | R 44.99 |
| Trainee Manager | R 38.86 | R 48.58 |
| Assistant Manager | R 42.33 | R 52.93 |
| Manager | R 46.40 | R 58.00 |
For Employees who work more than 27 hours per week as per Clause 2(2):
| Job Category | Rate per hour | Rate per week | Rate per month |
| General Assistant / Trolley Collector | R 21.69 | R 976.05 | R 4 229.22 |
| Security Guard | R 21.69 | R 976.05 | R 4 229.22 |
| Forklift Operator | R 21.69 | R 976.05 | R 4 229.22 |
| Driver < 3 500kg | R 21.69 | R 976.05 | R 4 229.22 |
| Merchandiser / Shop Assistant / Checker / Deli Assistant | R 21.69 | R 976.05 | R 4 229.22 |
| Cashier | R 24.00 | R 1 080.00 | R 4 679.64 |
| Driver > 3 501 < 9 000kg | R 26.08 | R 1 173.60 | R 5 508.33 |
| Clerk / Sales Assistant / Sales person / Block man / Baker | R 28.25 | R 1 271.25 | R 5 508.33 |
| Driver > 9 001 < 16 000kg | R 28.39 | R 1 277.55 | R 5 535.62 |
| Displayer | R 29.33 | R 1 319.85 | R 5 718.91 |
| Driver > 1 6001kg | R 31.20 | R 1 404.00 | R 5 535.62 |
| Supervisor | R 34.74 | R 1 563.30 | R 6 773.78 |
| Trainee Manager | R 37.53 | R 1 688.85 | R 7 317.79 |
| Assistant Manager | R 40.85 | R 1 838.25 | R 7 965.14 |
| Manager | R 44.80 | R 2 016.00 | R 8 735.33 |
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 Category | Rate per hour | Rate per hour |
| General Assistant / Trolley Collector | R 21.69 | R 23.81 |
| Security Guard | R 21.69 | R 25.91 |
| Forklift Operator | R 21.69 | R 23.98 |
| Driver < 3 500kg | R 21.69 | R 24.60 |
| Merchandiser / Shop Assistant / Checker / Deli Assistant | R 21.69 | R 25.90 |
| Cashier | R 21.69 | R 27.45 |
| Driver > 3 501 < 9 000kg | R 23.53 | R 29.41 |
| Clerk / Sales Assistant / Sales person / Block man / Baker | R 29.25 | R 36.56 |
| Driver > 9 001 < 16 000kg | R 28.15 | R 35.19 |
| Displayer | R 25.06 | R 31.33 |
| Driver > 1 6001kg | R 30.94 | R 38.67 |
| Supervisor | R 31.45 | R 39.33 |
| Trainee Manager | R 33.67 | R 42.08 |
| Assistant Manager | R 37.11 | R 46.40 |
| Manager | R 40.25 | R 50.31 |
For Employees who work more than 27 hours per week as per Clause 2(2):
| Job Category | Rate per hour | Rate per week | Rate per month |
| General Assistant / Trolley Collector | R 21.69 | R 976.05 | R 4 229.22 |
| Security Guard | R 21.69 | R 976.05 | R 4 229.22 |
| Forklift Operator | R 21.69 | R 976.05 | R 4 229.22 |
| Driver < 3 500kg | R 21.69 | R 976.05 | R 4 229.22 |
| Merchandiser / Shop Assistant / Checker / Deli Assistant | R 21.69 | R 976.05 | R 4 229.22 |
| Cashier | R 21.69 | R 976.05 | R 4 229.22 |
| Driver > 3 501 < 9 000kg | R 21.69 | R 976.05 | R 4 229.22 |
| Clerk / Sales Assistant / Sales person / Block man / Baker | R 24.89 | R 1 120.05 | R 4 853.18 |
| Driver > 9 001 < 16 000kg | R 27.00 | R 1 215.00 | R 5 264.60 |
| Displayer | R 24.07 | R 1 083.15 | R 4 693.29 |
| Driver > 1 6001kg | R 29.68 | R 1 335.60 | R 5 787.15 |
| Supervisor | R 30.21 | R 1 359.45 | R 5 890.50 |
| Trainee Manager | R 32.29 | R 1 453.05 | R 6 296.07 |
| Assistant Manager | R 35.57 | R 1 600.65 | R 6 935.62 |
| Manager | R 38.57 | R 1 735.65 | R 7 520.57 |
It is therefore important that Employers ensure that they have updated their payroll accordingly to comply with the above increases.
