9 April 2025
The General Secretary of the Bargaining Council for the Restaurant, Catering, and Allied Trades Collective Agreement has recently issued a crucial notice to all stakeholders regarding an upcoming change to the minimum wage for restaurants in Johannesburg. According to the newly implemented National Minimum Wage regulations, the hourly minimum wage for restaurants will increase from R28.79 per hour to R30.77 per hour, effective 1 June 2025. This represents a R1.98 increase per hour. This wage adjustment is a significant shift, as the hike will place additional financial pressure on many businesses, especially smaller establishments that are already operating with limited profit margins.
What Does the Increase Mean for Restaurants?
The increase in the minimum wage could have varying impacts depending on the size and financial stability of the business. Larger restaurants with higher turnover might find it more manageable, but for smaller or independent establishments, this rise could potentially strain their cash flow, forcing them to make difficult decisions regarding staffing or operating costs.
Exemption Application: A Vital Option
It is essential for businesses to be aware that the Main Collective Agreement includes provisions that allow restaurants to apply for an exemption from this wage increase, along with other related requirements. This option could provide some much-needed relief for businesses facing financial difficulties or challenges in meeting the new wage standards. To avoid any potential compliance issues or financial strain, it is crucial that businesses act promptly. The exemption application must be submitted before the new wage rate takes effect on 1 June 2025. By submitting the application on time, restaurants can safeguard themselves from unnecessary compliance issues and avoid facing the burden of increased wages they may not be able to afford.
Conclusion
While the wage increase represents a positive change for employees in the restaurant industry, businesses must prepare for the financial implications. Taking advantage of the exemption process, if necessary, could help mitigate some of the pressure on smaller establishments. Restaurants should stay proactive, ensuring they are in full compliance with the new regulations to avoid unnecessary complications down the road
Should you wish to apply for exemption from the increase, or have any further queries pertaining thereto, please do not hesitate to contract Invictus on 0861 737 263 or email admin@invictusgroup.co.za.
