On the 2nd of February 2024, the Minister for Labour and Employment (Thembelani Waltermade Nxesi) announced an increase to the National Minimum Wage as well as the Minimum Wage for the Contract Cleaning Sector in terms of the National Minimum Wage Act, 2018 (as amended from 1 March 2024). This increase will take effect on the 1st of March 2024.
Notwithstanding the increase to the minimum wage, there appears to be a further development in terms of how an employer can determine what the minimum wage is. Previously, it had been held that allowances / bonusses do not form part of the minimum wage calculation, however in the recent case of Quantum Foods v CCMA and others (JA85/2022), the Labour Appeal Court found that “Contractual Bonuses”, i.e. bonuses which an employee is contractually entitled to or, stated in a different way, which are automatically paid to the employee in terms of his contract of employment, do form part of his “wage” for the purposes of determining whether or not the employer is complying with the minimum wage.
This means that certain allowances may, therefore, also be added along with the employee’s wage when the Department of Employment and Labour determines whether an employer is compliant with the National Minimum Wage, as an example, an employee who is paid a guaranteed monthly “Safety Bonus” of R 1 000.00, would only be entitled to an hourly wage of as low as R 22.45, without the employer having contravened the National Minimum Wage Act.
As per Government Notice No. R4331 in Government Gazette No. 50073 of 2 February 2024, the National Minimum Wage shall be increased by ~8.5% as from the 1st of March 2024. The new National Minimum Wage, including Domestic and Farm Workers, will therefore be as follows:
- National Minimum Wage: R 27.58 per hour (Including Domestic- and Farm Workers);
- Workers in government expanded public works programme: R15.16 per hour.
Furthermore, Learnership Allowances have been increased as follows:
| NQF Level | Credits already earned by learner | Minimum allowance per week |
|---|---|---|
| Levels 1 to 2 | 0 – 120 | R 415.07 |
| 121 – 240 | R 830.09 | |
| Level 3 | 0 – 120 | R 415.07 |
| 121 – 240 | R 781.73 | |
| 241 – 360 | R 1 279.76 | |
| Level 4 | 0 – 120 | R 415.07 |
| 121 – 240 | R 830.17 | |
| 241 – 360 | R 1 279.76 | |
| 361 – 480 | R 1 867.73 | |
| Levels 5 to 8 | 0 – 120 | R 415.07 |
| 121 – 240 | R 899.25 | |
| 241 – 360 | R 1 345.47 | |
| 361 – 480 | R 1 895.45 | |
| 481 – 600 | R 2 421.13 |
Minimum Wage – Contract Cleaning Sector (SD1)
As per the previous Year, the Contract Cleaning Sector, governed by Sectoral Determination 1 (SD1) also sees their Minimum Wages increased in terms of the National Minimum Wage Act, 2018 (as amended from 1 March 2024) and shall therefore be as follows:
| Area A | Area B | Area C |
|
Metropolitan Councils: City of Cape Town, Greater East Rand Metro, City of Johannesburg, Tshwane and Nelson Mandela. Local Council: Emfuleni, Merafong, Mogale City, Metsimaholo, Randfontein, Stellenbosch, Westonaria |
All Areas in Kwazulu-Natal NB: Conditions of employment and minimum wage rates for KwaZulu-Natal areaas shall be subjected to the collective agreement concluded in the Bargaining Council for the Contract Cleaning Service Industry (BCCCI). |
In the rest of the Republic of South Africa |
| Rate per hour | Rate per hour | Rate per hour |
| R 30.35 | BCCCI rates apply | R 27.67 |
It should also be noted that the conditions of employment in the Contract Cleaning Sector are governed by Sectoral Determination 1 and may differ from those in other sectors.
Minimum Wage – Retail and Wholesale Sector (SD9)
This Year, Government has also included the Wholesale and Retail Sector in the National Minimum Wage increase. This Sector is governed by Sectoral Determination 9 (SD9) and the increase to the rates are as follows:
Area A: Bergrivier, Breede Valley, Buffalo City, Cape Agulhas, Cederberg, City of Cape Town, City of Johannesburg Metropolital Municipality, City of Tshwane, Drakenstein, Ekurhuleni, Emalahleni, Emfuleni, Ethkekwini Metropolitan Unicity, Gamagara, George, Hibiscus Coast, Karoo Hoogland, Kgatelopele, Khara Hais, Knysna, Kunwini, Kouga, Hessequa local authority, Lesedi, Makana, Magnaung, Matzikama, Metsimaholo, Middelburg (Mpumalanga), Midvaal, Mngeni, Mogale, Mosselbaai, Msunduzi, Mtubatuba, Nama Khoi, Nelson Mandela, Nokeng tsa Taemane, Oudtshoorn, Overstrand, Plettenbergbaai, Potchefstroom, Randfontein, Richtersveld, Saldanha Bay, Sol Plaatjie, Stellenbosch, Swartland, Swellendam, Theewaterskloof, Umdoni, uMhlathuze and Witzenberg Metropolitan and Local Municipalities:
For Employees who work 27 Hours or less in a week:
| Clause 2(3)(b) | Clause 2(3)(a) | |
| Job Category | Rate per hour | Rate per hour |
| General Assistant / Trolley Collector | R 27.58 | R 32.41 |
| Security Guard | R 27.58 | R 32.94 |
| Forklift Operator | R 27.58 | R 35.19 |
| Driver < 3 500kg | R 27.58 | R 35.90 |
| Merchandiser / Shop Assistant / Checker / Deli Assistant | R 29.78 | R 37.25 |
| Cashier | R31,58 | R39,49 |
| Driver > 3 501 < 9 000kg | R 34.36 | R 42.94 |
| Clerk / Sales Assistant / Sales person / Block man / Baker | R 37.18 | R 46.47 |
| Driver > 9 001 < 16 000kg | R 37.42 | R 46.75 |
| Displayer | R 38.62 | R 48.26 |
| Driver > 1 6001kg | R 41.08 | R 51.37 |
| Supervisor | R 45.74 | R 57.19 |
| Trainee Manager | R 49.40 | R 61.76 |
| Assistant Manager | R 53.81 | R 67.28 |
| Manager | R 58.98 | R 73.73 |
For Employees who work more than 27 hours per week as per Clause 2(2):
| Job Category | Rate per hour | Rate per week | Rate per month |
| General Assistant / Trolley Collector | R 27.58 | R 1 241.10 | R 5 377.69 |
| Security Guard | R 27.58 | R 1 241.10 | R 5 377.69 |
| Forklift Operator | R 27.58 | R 1 241.10 | R 5 377.69 |
| Driver < 3 500kg | R 27.58 | R 1 241.10 | R 5 377.69 |
| Merchandiser / Shop Assistant / Checker / Deli Assistant | R 27.58 | R 1 241.10 | R 5 377.69 |
| Cashier | R 30.51 | R 1 372.95 | R 5 948.99 |
| Driver > 3 501 < 9 000kg | R 33.16 | R 1 492.20 | R 6 465.70 |
| Clerk / Sales Assistant / Sales person / Block man / Baker | R 35.91 | R 1 615.95 | R 7 001.91 |
| Driver > 9 001 < 16 000kg | R 36.09 | R 1 624.05 | R 7 037.01 |
| Displayer | R 37.28 | R 1 677.60 | R 7 269.04 |
| Driver > 1 6001kg | R 39.66 | R 1 784.70 | R 7 733.11 |
| Supervisor | R 44.17 | R 1 987.65 | R 8 612.49 |
| Trainee Manager | R 47.71 | R 2 146.95 | R 9 302.73 |
| Assistant Manager | R 51.93 | R 2 336.85 | R 10 125.57 |
| Manager | R 56.95 | R 2 562.75 | R 11 104.40 |
Area B: Metropolitan and Local Municipalities not mentioned in Area A:
For Employees who work 27 Hours or less in a week:
| Clause 2(3)(b) | Clause 2(3)(a) | |
| Job Category | Rate per hour | Rate per hour |
| General Assistant / Trolley Collector | R 27.58 | R 30.26 |
| Security Guard | R 27.58 | R 32.94 |
| Forklift Operator | R 27.58 | R 30.48 |
| Driver < 3 500kg | R 27.58 | R 31.27 |
| Merchandiser / Shop Assistant / Checker / Deli Assistant | R 27.58 | R 32.93 |
| Cashier | R 27.58 | R 34.89 |
| Driver > 3 501 < 9 000kg | R 29.90 | R 37.39 |
| Clerk / Sales Assistant / Sales person / Block man / Baker | R 37.18 | R 46.47 |
| Driver > 9 001 < 16 000kg | R 35.78 | R 44.73 |
| Displayer | R 31.86 | R 39.83 |
| Driver > 1 6001kg | R 39.32 | R 49.16 |
| Supervisor | R 39.98 | R 50.00 |
| Trainee Manager | R 42.80 | R 53.49 |
| Assistant Manager | R 47.18 | R 58.98 |
| Manager | R 51.17 | R 63.95 |
For Employees who work more than 27 hours per week as per Clause 2(2):
| Job Category | Rate per hour | Rate per week | Rate per month |
| General Assistant / Trolley Collector | R 1 241.10 | R 5 377.69 | R 1 241.10 |
| Security Guard | R 1 241.10 | R 5 377.69 | R 1 241.10 |
| Forklift Operator | R 1 241.10 | R 5 377.69 | R 1 241.10 |
| Driver < 3 500kg | R 1 241.10 | R 5 377.69 | R 1 241.10 |
| Merchandiser / Shop Assistant / Checker / Deli Assistant | R 1 241.10 | R 5 377.69 | R 1 241.10 |
| Cashier | R 1 241.10 | R 5 377.69 | R 1 241.10 |
| Driver > 3 501 < 9 000kg | R 1 241.10 | R 5 377.69 | R 1 241.10 |
| Clerk / Sales Assistant / Sales person / Block man / Baker | R 1 423.80 | R 6 169.33 | R 1 423.80 |
| Driver > 9 001 < 16 000kg | R 1 544.40 | R 6 691.89 | R 1 544.40 |
| Displayer | R 1 377.00 | R 5 966.54 | R 1 377.00 |
| Driver > 1 6001kg | R 1 698.30 | R 7 358.73 | R 1 698.30 |
| Supervisor | R 1 728.00 | R 7 487.42 | R 1 728.00 |
| Trainee Manager | R 1 847.25 | R 8 004.13 | R 1 847.25 |
| Assistant Manager | R2 034,45 | R8 815,27 | R2 034,45 |
| Manager | R2 206,35 | R9 560,11 | R2 206,35 |
It is therefore important that Employers ensure that they have updated their payroll accordingly to comply with the above increases and to ensure that they comply with the minimum wage as it applies to their employees.
Leave a Reply