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DoEL: Proposed National Minimum Wage hike for 2026
- 08 January 2026
- Law
- South African Accounting Academy
Summary:
The Department of Employment & Labour has gazetted a report on the latest annual national minimum wage investigation, along with a notice calling for input by 12 January 2026.
Article:
This is noting that, for 2026, the report recommends an upward adjustment to the prevailing minimum wage – calculated according to the consumer price index plus 1,5%.
The recommended adjustment was informed by stakeholder input received during the investigation, which began in August 2025.
The National Minimum Wage Commission’s recommendation was that bottom-line pay for workers in South Africa be hiked by CPI+1.5% in 2026.
- The recommendation was published on 10 December 2025 and then subsequently withdrawn.
- The recommendation was then republished following the gazetting of the commission’s report, unchanged.
Since 1 March 2025, the minimum hourly rate has been R28,79 for every ordinary hour worked (also applicable to farm and domestic employees), while:
- expanded public works programme participants should have been paid at least R15,83 per hour
- minimum learnership allowance adjustment calculations should have been informed by National Qualification Framework levels
- minimum hourly rate calculations for contract cleaning sector employees should have differentiated between KwaZulu-Natal and the remainder of South Africa, and
- minimum wages calculations for wholesale and retail sector employees should have taken account of workplace location and job category.
Presumably, the same will apply when the new national minimum wage is announced in anticipation of its commencement on 1 March 2026.
Deadline for comments is 12 January 2026.
Click here to download the document:
Relevance to Auditors, Independent Reviewers & Accountants:
- The National Minimum Wage Act is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
- As an auditor, accountant and tax practitioner, you may need to advise your clients on National Minimum Wage, and you should therefor be aware of al relevant updates published by the Department of Education and Labour.
Relevance to Your clients:
- An entity (company or close corporation) and individual employers have a duty to comply with the Companies Act.
- It is illegal and unfair labour practice for an employer to unilaterally change working hours or other employment conditions in order to implement the NMW.