Business

This is the new minimum wage for hospitality workers in South Africa

Staff Writer

 ·20 Jun 2018

The Department of Labour has announced that the the minimum wage for South Africa’s hospitality sector will be revised upward with effect from 1 July 2018.

As defined under current sectoral determinations, these changes apply to all workers in the hospitality sector – including those that work in:

• Hotels
• Inns
• Resorts
• Accommodation faculties
• Restaurants
• Pubs
• Coffee shops
• Catering

However, they do not apply to those involved in the trading and letting of flats, rooms, and houses, or employees who are covered under another sectoral determination.

According to the Department, the minimum rate for employers with 10 or less employees will be a monthly wage of  R3,384.71; a weekly rate of R781.14; and an hourly rate of R17.34

The new wages for employers with more than 10 employees will be a minimum monthly rate of R3,772.65; a weekly rate of R870.62; and an hourly rate of R19.35.

“The current wage increases have been determined by using the April CPI (excluding owners’ equivalent rent) reported by Stats SA on the 23 May 2018 which is 4.5% plus 1.5% as prescribed in the Sectoral Determination. The total increase is 6%,” the Department said.

While these fees are the minimum amounts that those working in the hospitality sector can expect to earn, workers can earn substantially more – especially if working for a large or well-respected business.

A number of workers in the hospitality sector also expect to earn tips or some form of gratuity, and because the new legislation has changed in recent years to apply to the whole hospitality sector (whereas it used to set out minimum wages for each job type), some may earn more than others.

For example, PayScale found that waiters and waitresses can expect to earn an average salary of R35,851 per year, while those working as a receptionist at a hotel can expect to earn closer to R60,000 a year.

10 or less employees

Read: How much a bartender earns in South Africa vs what Parliament is offering right now