Have your say on National Minimum Wage adjustment

Tuesday, September 21, 2021

All parties interested in the annual review of the National Minimum Wage (NMW) for 2022 have until 1 October 2021 to submit written representations concerning possible adjustments.

The Department of Employment and Labour said in a statement that these representations will be considered by the National Minimum Wage Commission before it publishes its annual report, and recommendations on the annual review of the national minimum wage later in the year.

The NMW Act of 2018 enjoins the NMW Commission to annually review rates and make recommendations to the Employment and Labour Minister on any adjustment to the National Minimum Wage, while also reflecting on alternative views, including those of the public.

In February, Minister Thulas Nxesi announced that the National Minimum Wage for each ordinary hour worked has been increased from R20.76 to R21.69 for the year 2021, with effect from 1 March 2021.

The department said in terms of the NMW Act of 2018, the policy instrument is a floor level below which no employee should be paid.

“It is illegal and an unfair labour practice for an employer to unilaterally alter hours of work or other conditions of employment in implementing the NMW. The NMW is the amount payable for the ordinary hours of work and does not include payment of allowances (such as transport, tools, food or accommodation), payments in kind (boarding or lodging), tips, bonuses and gifts.

“In considering the annual adjustment, the NMW Commission takes into account the following factors: inflation, the cost of living, and the need to retain the value of the minimum wage; gross domestic product; wage levels and collective bargaining outcomes; productivity; ability of employers to carry on their businesses successfully; the operation of small, medium or micro-enterprises and new enterprises; likely impact of the recommendation adjustment on employment or the creation of employment.”

Interested parties are requested to send their comments and representations should reach the directorate: Employment Standards, Department of Employment and Labour, Private Bag X117, Pretoria, 0001 or be sent to nmwreview@labour.gov.za by 1 October 2021. – SAnews.gov.za