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New minimum wage to take effect next month

March 10, 2025by ITR Support78

Starting from the 1st of next month, South Africa’s new national minimum wage will come into effect, bringing changes that are expected to impact various industries across the country.

The wage has been increased to R28.79 per hour, up from the previous rate of R27.58.

Managing Director at Strata-G Labour Solutions, Advocate Tertius Wessels, emphasises the importance of open communication during this transition. He notes that employees earning above the national minimum wage are not automatically entitled to the 4.4% increase, highlighting the need for employers to engage openly with their workforce to manage expectations and ensure compliance.

“This increase of the 4.4% really only applies to those employees that are currently earning the minimum wage and many employees that earn above this national minimum wage are not automatically entitled to receive a 4.4% increase. And unless there is open communication between employer and employee, there might be an expectation and it could cause labour unrest which again has the ability to adversely affect the employer, especially smaller businesses.”

This adjustment aims to improve living standards for workers, but businesses must carefully navigate the implications to maintain fair and transparent labour practices.

Compliance

Meanwhile, employers across the country are urged to familiarise themselves with the new regulation regarding the minimum wage to ensure compliance.

Wessels says although the amount may seem insignificant, it will have an impact on a number of small businesses.

“This increase will undoubtedly have an impact on both employers and employees, many employees and labour federations see this increase as minimal and almost as insignificant but ultimately there are also many small employers out there that really see this as something that’s going to impact their ability to remain operationally or financially sustainable.”

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