The previous national minimum wage of R23.19 for each employee’s ordinary hour was deemed effective from “1 March 2022”. Approximately nine months following the implementation of the previous national minimum wage on the 1st of March 2022, the National Minimum Wage Commission started considering an adjustment to the national minimum wage in the range of CPI (Consumer Price Index) plus 0.5% and CPI plus 1.0% for 2023.
Is another increase on the books?
Considering the above-mentioned, the National Minimum Wage could potentially be increased to R25.05 per hour at the current inflation rates. Upon considering those described above, the national minimum wage could increase by more than 8%, with the forecast of its implementation being from the 1st of March 2023, due to the previous national minimum wage being with effect until the 28th of February 2023.
The potential increase seems to be more than the percentage of increase during the national minimum wage increase from the year “2022” to the year “2023”, which was almost 7%. Should the national minimum wage increase to R25.05 per hour, it could work out to a monthly wage of approximately R4208.40.
Wage earners should make enough to maintain a decent standard of living
Referring back to the 15th of December 2022, the “National Minimum Wage Commission” issued a “Government Gazette” in terms of section 11(d) of the National Minimum Wage Act 2018, which pertains to the consideration of all relevant aspects to reach the following:
“All wage-earning workers must earn enough to maintain a decent standard of living defined as sufficient to support themselves and their families at a level that is both socially acceptable and economically viable. The target should ensure that the value of the national minimum wage does not decline relative to the median wage.”
Finally, “the “National Minimum Wage Commission” has announced that in terms of Section 52(3) of the Basic Conditions of Employment Act (BCEA), No 75 of 1997, it has started an investigation into the protection of Community Health Workers (CHWs) in South Africa”.
The reason for the aforesaid is to investigate the “wages and conditions of employment” of the “Community Health Workers in the health sector” and ultimately gain a sectoral determination in favour thereof.
Please contact our office on 086 173 7263 if you have any queries or require assistance implementing new wage structures and procedures.