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New increased Minimum Wage effective from 1 March 2025
- 07 February 2025
- Regulatory Compliance and Legislation
- South African Accounting Academy
Summary:
The Department of Employment & Labour has increased the national minimum wage for every ordinary hour worked from 2024’s R27,58 to R28,79, effective from 1 March 2025.
Article:
The new rate will also apply to farm and domestic employees, while expanded public works programme participants should expect to be paid at least R15.83 per hour - also from 1 March 2025.
The minimum wage of R27,58 per hour has thus increased by R1,21 to R28,79 per hour (an increase of approximately 4,4%). The new minimum wage sets a new baseline across all sectors, with a few exceptions.
The Government Gazette notice announcing these adjustments includes schedules prescribing:
- minimum learnership allowances per National Qualification Framework level
- minimum hourly rates for contract cleaning sector employees (differentiating between KwaZulu-Natal and the remainder of South Africa), and
- minimum wages for wholesale and retail sector employees per area and job category.
Click here to download the gazetted Notice:
https://www.gov.za/sites/default/files/gcis_document/202502/52053rg11792gon5830.pdf
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 employer, you also need to consider compliance with the National Minimum Wage Act in your workplace, and at home.
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.
- As an employer, your clients also need to consider compliance with the National Minimum Wage Act in their workplace, and at home.