National Minimum Wage Bill Enacted
On November 26, 2018, the National Minimum Wage Bill was signed into law – “National Minimum Wage Act” hereinafter referred to as “Act”, with effect from January 1, 2019.
The Act sets a mandatory, national minimum wage at 20 South African Rand (ZAR) for each ordinary hour worked. The Act states that all employees are entitled to receive, and all employers are required to pay wages no less than the national minimum wage. The national minimum wage cannot be waived, and it takes precedence over any contrary provision in any contract, collective agreement or law, except a law amending this Act.
The Act makes the national minimum wage rates subject to annual review and adjustment. The national minimum wage is not universal in its application; it imposes lower minimum wage rates for farm workers, domestic workers, and persons engaged in expanded public works programs. This exemption is valid for two years, after which all employers must pay at least the national minimum wage announced.