Employment and Labour Minister  Thembelani Thulas Nxesi has announced that the National Minimum Wage (NMW) for each ordinary hour worked has been increased from R20,76 to R21,69 for the year 2021 with effect from 01 March 2021.

The NMW legislation in South Africa came into effect on 01 January 2019 at a level of R20 per hour. In terms of the NMW Act of 2018, the policy framework is a floor level below which no employee should be paid.

Nxesi says that 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 (board or lodging), tips, bonuses, and gifts. The Act of 2018 requires that the NMW Commission review the rates annually and make recommendations to the Minister on any adjustment of the national minimum wage, while also reflecting on alternative views, including those of the public.

In line with the Basic Conditions of Employment Act (BCEA), the increase in the NMW will mean that wages prescribed in the sectoral determinations that were higher than the NMW at its promulgation, must be increased proportionally to the adjustment of the national minimum wage. Therefore, the Contract Cleaning; and Wholesale and Retail Sector will also have their wages upwardly adjusted by 4,5 percent.