A national minimum wage for South Africa

20 September 2019 400

The minimum wage in context

Minimum wages have been utilised in both developing, and developed, countries for many years. The introduction of a minimum wage into our law is therefore, from a comparative perspective, not a novel concept. However, it is new to South African law.

On 3 December 2018 the Minister of Labour, Mildred Oliphant, placed a sectoral determination in the Government Gazette which provides for the minimum wage payable to domestic workers. This minimum wage is applicable to all major municipalities in South Africa.

The determination distinguishes between domestic workers who work more than 27 hours per week, and domestic workers who work 27 hours per week or less. Domestic workers whose working hours exceed 27 hours a week must be paid a minimum wage of R13,69 per hour, R616,03 per week, or R2669,24 per month. On the other hand, domestic workers working 27 hours per week or less have a minimum wage set at R16,03 per hour. These workers’ weekly wage is R432,78, while the amount payable to these workers monthly is R1875,22.

The National Minimum Wage Act 9 of 2018

The minimum wage specifications made in respect of domestic workers at the start of December 2018 form part of a larger scheme of minimum wage determinations, and must therefore not be viewed in isolation. The sectoral determination in the Government Gazette states that the minimum wages applicable to domestic workers apply for the period 3 December 2018 until the promulgation of the minimum wage provision in the National Minimum Wage Act 9 of 2018 (“Act”).

The Act was signed into law by President Cyril Ramaphosa and came into effect on 1 January 2019. The Act prescribes a minimum wage of R20 per hour for many of the country’s employees. R20 per hour equates to R800 per week or R3500 per month. This amount was reached after considerable research was conducted, and many arguments advanced to the Advisory Panel (chaired by Prof Imraan Valodia).

According to the submissions, a rate beneath R20 an hour would do little to alleviate poverty in our country. The minimum wage applies to farm workers, forestry workers, domestic workers, welfare workers, and care workers. These categories of persons have been included on the basis of their particular susceptibility to disemployment, in addition to long-term unemployment. There are currently over six million employees earning below R20 an hour in South Africa.

Why a national minimum wage?

The Act follows precisely four years after the National Economic Development and Labour Council (“NEDLAC”) began discussions about protecting employees receiving minimal income. A primary goal of the minimum wage is, accordingly, to decrease inequality and attempt to completely eliminate poverty. The minimum wage is intended to be a working solution which benefits the poor, and is designed to be an instrument which will close the wage gap.

Tags: Information, Law
Share: