NATIONAL MINIMUM WAGE COMMISSION: 2025 RECOMMENDATIONS OUT FOR COMMENT

Input is sought by 14 January 2025 on the latest National Minimum Wage Commission report, which follows a routine annual review begun in August 2024. The report includes adjustment recommendations for 2025.

Informed by input received during the review process, the Commission is recommending that the minimum wage for 2025 be adjusted by the consumer price index rate plus 1,5% – effective from 1 March 2025. This is noting that the following factors were considered:

  • inflation, the cost of living and ‘the need to retain the value of the national minimum wage’
  • ‘wage levels and collective bargaining outcomes’
  • GDP and productivity
  • the ability of employers to continue operating their businesses successfully
  • the challenges facing small, medium, micro and new enterprises
  • the likely impact of the proposed adjustment on employment and job creation, and
  • the requirements of the 2018 National Minimum Wage Act.

The hourly minimum wage now stands at R27.58, with certain exceptions.

Given the high rate of non-compliance, a cover note to the report reminds employers of the Act’s exemption provisions where ‘unaffordability’ is a valid reason for paying employees less than the minimum wage.

Published by SA Legal Academy Policy Watch

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