National Minimum Wage changes for South Africa are coming
The National Minimum Wage (NMW) Commission has issued a call for public input and submissions on adjustments to the NMW for 2026.
The commission does an annual call to stakeholder for inputs, which it then compiles into a recommendation report for possible adjustments to the wage the next year.
The recommendations are given to the Minister of Employment and Labour later in 2025, in accordance with Section 6(2) of the NMW Act.
The National Minimum Wage is the lowest remuneration rate that employers are obligated and legally permitted to pay their employees for each ordinary hour worked.
It is illegal for employers to pay their employees less than the minimum threshold.
The minimum wage is currently fixed at R28.79 for each ordinary hour worked, which was announced in February 2025 and implemented from March.
The NMW increase for 2025 was 4.4%, which was in line with inflation at the time.
For a person working a 38-hour week, this works out to a minimum salary of R1,094 per week or R4,737 per month.
The minimum salary for a person working a 45-hour week increased to R1,295 per week and R5,610 per month.
The National Minimum Wage Commission is responsible for annually reviewing and recommending adjustments to the national minimum wage.
It also investigates and reports annually to the minister on the impact of the national minimum wage on the economy, collective bargaining, and income differentials.
Therefore, input from stakeholders is vital to the process, as it can have a real-world impact on what the final approved rate will be.
Representations should reach the directorate: Employment Standards, Department of Employment and Labour, Private Bag X117, Pretoria, 0001 or be sent to [email protected] by 18 September 2025.
Changes to expect
While the NMW commission speaks of “possible” changes to the minimum wage, the group has already committed to hikes each year above inflation at the bare minimum.
In May 2023, the commission gazetted its medium-term NMW targets, which set a three-year goal for the minimum wage and its commitments to meeting it.
2026 represents the final of the three-year window determined by the commission, so it is likely that the same targets and considerations will be taken into account in this year’s report.
While the commission considers all the inputs given, it has explicitly linked the minimum wage to economic indicators.
Specifically, future minimum wage increases will be linked to the consumer price index (CPI) as well as the median wage level in the country.
The commission has also determined that the minimum wage should increase at rates above inflation, so that wages grow in real terms and don’t lose value.
Factors considered by the Commission in the annual adjustment include:
- Inflation;
- The cost of living and the need to retain the value of the minimum wage;
- Wage levels and collective bargaining outcomes;
- Gross Domestic Product (GDP);
- The ability of employers to carry on their businesses successfully;
- The operation of small, medium or micro-enterprises and new enterprises; and
- The impact on employment or the creation of jobs.
Following consultations in 2023, the department hiked the NMW by 9.62% for 2024.
This drew significant backlash from employers and business groups, but came off of two years of extremely high levels of inflation and low wage growth.
Hikes in the NMW are often welcomed by workers and labour unions, while employers and businesses are less enthused, typically pointing to increased operation costs in what is an already a difficult economic environment.
For 2024’s consultations, the result was more employer-friendly, in that the inflation-tied increase of 4.4% was implemented.
While 2025’s consultations are only now starting, workers can at the very least expect an increase of 3%, given the current inflation levels.
Based on the current monthly minimum of R28.79, employers should expect a new level upwards of R29.65 per hour.
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