The National Minimum Wage Commission has proposed an increase in the national minimum wage for domestic workers and other employees.
The National Minimum Wage Act was officially introduced in 2018, and the commission is required to review the country’s minimum wage on an annual basis. Both industry experts and the public are expected to comment on the proposals as well.
The three key findings of the commission are:
- The majority of Commissioners recommend that the national minimum wage be increased by 1.5% above inflation, as measured by the consumer price index (CPI)
- They also recommend that the minimum for farmworkers be aligned with the national minimum wage in 2021
- The minimum for domestic workers be gradually increased to equal the national minimum wage by 2022
Most of the Commissioners recommended that the national minimum wage be increased by the rate of inflation, plus an additional 1.5%. As of September 2020, the inflation rate is measured at 3% so this will equal a 4.5% increase.
The national minimum wage was set to R20 an hour in 2018. In 2019, it made the recommendation that the national minimum wage be increased at the rate of inflation for the poorest decile of households for March 2020.
Therefore, the national minimum wage increased from R20.00 to R20.76 an hour from March 2020. An increase of 4.5% would effectively raise the minimum wage by around a further 93 cents to R21.69.
Read the National Minimum Wage Commission report here: Minimum-wage