Printing SA Announces Government Notice On New Minimum Wage

Printing SA Announces Government Notice On New Minimum Wage

Printing SA has announced government notifications on an increase in the national minimum wage.

The Minister of Employment and Labour Minister TW Nxesi has announced that the National Minimum Wage (NMW) for each ordinary hour worked has been increased from R20,76 to R21,69 for the year 2021, with effect from 1 March 2021.

The NMW legislation in South Africa came into effect on 1 January 2019 at a level of R20 per hour. In terms of the NMW Act of 2018, the policy framework is a level below which no employee should be paid.

The NMW is the amount payable for the ordinary hours of work and does not include payment of allowances (such as transport, tools, food or accommodation) payments in kind (board or lodging), tips, bonuses and gifts.

The Act of 2018 requires that the NMW Commission review the rates annually and make recommendations to the Minister on any adjustment of the national minimum wage, while also reflecting on alternative views, including those of the public.

In considering the annual adjustment, the commission considers the following factors: inflation, the cost of living and the need to retain the value of the minimum wage; gross domestic product; wage levels and collective bargaining outcomes; productivity; ability of employers to carry on their businesses successfully; the operation of small, medium or micro-enterprises and new enterprises as well as the likely impact of the recommendation adjustment on employment or the creation of employment.

Workers on expanded public works programmes are entitled to R11,93 per hour and workers who have concluded learnerships agreements are entitled to allowances as determined by the national qualifications framework level.

In line with the Basic Conditions of Employment Act (BCEA), the increase in the NMW will mean that wages prescribed in the sectoral determinations that were higher than the NMW at its promulgation, must be increased proportionally to the adjustment of the national minimum wage. Therefore, the contract cleaning and wholesale and retail sector will also have their wages upwardly adjusted by 4,5 percent. Find out more in the Official Government Gazette No. 44136.

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