National minimum wage | Effective 01 January 2019

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On Friday, 07 December 2018, President Cyril Ramaphosa announced that the long awaited National Minimum Wage would come into effect on 01 January 2019.

Labour Minister Mildred Oliphant said the minimum wage will not replace the minimum wages that have already been agreed to, through the collective bargaining agreements.

“The national minimum wage will only replace the minimum wage in the sector if that minimum wage is less than the national minimum wage”. This does not extend to domestic and farm workers.

Employers are therefore advised to evaluate their current remuneration practices and ensure that they are aligned with the minimum rate of R20.00 per hour.