By now, all employers in South Africa will know the National Minimum Wage Act, seeing as this Act determines the minimum payment for various employees across South Africa. The National Minimum Wage Act was first introduced in January 2019 and regulates payments for different Sectors such as Wholesale and Retail, Farmworkers, and Domestic Workers, to name a few.
The National Minimum Wage Commission should annually assess and review the national minimum wage. The Minister of Employment and Labour will then determine the adjustment based on the recommendation. On 08 February 2022, the Minister of Employment and Labour Gazetted the new National Minimum Wage for 2022 at a rate of R 23.19 per hour The R 23.19 per hour will include Farmworkers and Domestic Workers.
Looking back, the minimum wage progressed massively for the Farmworkers Industry and especially now for the Domestic Workers in a private household, seeing as Domestic Workers will now also earn R 23.19 per hour. The new minimum rate of R 23.19 will have a tremendous impact on Domestic Workers, especially seeing as Domestic workers were paid at a significantly lower rate in the past.
The Basic Conditions of Employment Act defines a Domestic Worker as follows:
an employee who performs domestic work in the home of their employer and includes
- a gardener;
- a person employed by a household as a driver of a motor vehicle; and
- a person who takes care of children, the aged, the sick, the frail or the disabled, but does not include a farmworker.
When the National Minimum Wage Act was first introduced in 2019, Farm Labours’ minimum wage started at R18 per hour. In 2020 the rate was increased to R18.68 per hour, which amounted to a 3.78% increase. In 2021 the Farm Labours’ wage increased to R 21.69, thus being a 16.11% increase. This caused farmers who are forced to maintain the same wage bill, to retrench two employees for every ten employees in their employment. The new minimum wage for Farmworkers for 2022 is R23.19 per hour, thus increasing 6.93% from the previous year.
When the National Minimum Wage Act was first introduced in 2019, Domestic workers in a private household earned R15.00 per hour. In 2020 this rate was increased to R15.57 per hour, which amounted to an increase of 3.8%. In 2021 the amount for Domestic workers in private households increased to R19.09 thus being an increase of 22.61%. The new minimum wage for Domestic Workers for 2022 is that of R23.19 per hour, thus being an increase of 21.5%.
When the National Minimum Wage was first introduced in 2019, the general minimum wage was R20-00 per hour, which increased to R20.76 in 2020, being an increase of 3.78%. In 2021 the wage increased by 4.5% to R 21-69. The new minimum wage for 2022 is that of R23.19 per hour, thus being an increase of 6.93%.
With the new National Minimum wage that was Gazetted as R 23.19, the total increase since its introduction in 2019 will be as follows:
- General Minimum wage increased by 15.95% from 2019 until 2023;
- Farmworkers minimum wage increased by 28.85% from 2019 until 2023;
- Domestic Workers minimum wage increased by 47.93% from 2019 until 2023.
The minimum wage of R 23.19 per hour for 2022 that was gazetted will come into effect on 01 March 2022. Monthly paid employees will, therefore, receive the new increase with the payment of their salaries at the end of March 2022.
The National Minimum Wage Act provides for exemption from paying the National Minimum Wage Act for employers who cannot afford the said wage. The exemption process will not be addressed for the purpose of this article.
Looking at the increases over the last three years, it is evident that it took an immense strain on industries. Taking external factors into consideration, such as the COVID-19 pandemic that struck in 2020, the new minimum wage for 2022 may be one of the last nails in the coffin for certain industries and employers who can hardly afford the increases as stated herein.
The writer believes that this tremendous increase for the domestic workers in the private household will contribute to the country’s unemployment statistic, seeing as average households will not be able to afford this tremendous increase of 21.5%.
Contact your nearest SEESA office for Labour Legal assistance. Alternatively, please leave your contact details on our website for a legal advisor to contact you.
About the author:
Alicia Oberholzer started her career at SEESA in 2018 and is currently a BEE & Labour Legal Advisor at SEESA’s Aliwal North branch. She obtained her LLB Degree in 2016 at the University of the Free State. She was admitted as an attorney in the Free State High Court in 2018.
Resources:
- Basic Conditions of Employment Act 75 of 1997;
- National Minimum Wage Act 9 of 2018.