{"id":835488,"date":"2025-08-20T07:00:00","date_gmt":"2025-08-20T05:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=835488"},"modified":"2025-08-20T07:03:55","modified_gmt":"2025-08-20T05:03:55","slug":"national-minimum-wage-changes-for-south-africa-are-coming","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/government\/835488\/national-minimum-wage-changes-for-south-africa-are-coming\/","title":{"rendered":"National Minimum Wage changes for South Africa are coming"},"content":{"rendered":"\n<p>The National Minimum Wage (NMW) Commission has issued a call for public input and submissions on adjustments to the NMW for 2026.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>The recommendations are given to the Minister of Employment and Labour later in 2025, in accordance with Section 6(2) of the NMW Act.<\/p>\n\n\n\n<p>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. <\/p>\n\n\n\n<p>It is illegal for employers to pay their employees less than the minimum threshold.<\/p>\n\n\n\n<p>The minimum wage is currently fixed at R28.79 for each ordinary hour worked, which was announced in February 2025 and implemented from March.<\/p>\n\n\n\n<p>The NMW increase for 2025 was 4.4%, which was in line with inflation at the time.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>The minimum salary for a person working a 45-hour week increased to R1,295 per week and R5,610 per month.<\/p>\n\n\n\n<p>The National Minimum Wage Commission is responsible for annually reviewing and recommending adjustments to the national minimum wage. <\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>Representations should reach the directorate: Employment Standards, Department of Employment and Labour, Private Bag X117, Pretoria, 0001 or be sent to nmwreview@labour.gov.za by 18 September 2025.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Changes to expect<\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/08\/Nomakhosazana-Meth-2.jpg\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/08\/Nomakhosazana-Meth-2-1024x576.jpg\" alt=\"\" class=\"wp-image-834862\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/08\/Nomakhosazana-Meth-2-1024x576.jpg 1024w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/08\/Nomakhosazana-Meth-2-300x169.jpg 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/08\/Nomakhosazana-Meth-2-768x432.jpg 768w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2025\/08\/Nomakhosazana-Meth-2.jpg 1200w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/a><figcaption class=\"wp-element-caption\">Labour Minister, Nomakhosazana Meth<\/figcaption><\/figure>\n\n\n\n<p>While the NMW commission speaks of \u201cpossible\u201d changes to the minimum wage, the group has already committed to hikes each year&nbsp;above inflation at the bare minimum.<\/p>\n\n\n\n<p><a href=\"https:\/\/businesstech.co.za\/news\/government\/686605\/above-inflation-minimum-wage-hikes-are-coming\/\"><strong>In May 2023<\/strong><\/a>, the commission gazetted its medium-term NMW targets, which set a three-year goal for the minimum wage and its commitments to meeting it.<\/p>\n\n\n\n<p>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&#8217;s report.<\/p>\n\n\n\n<p>While the commission considers all the inputs given, it has explicitly linked the minimum wage to economic indicators.<\/p>\n\n\n\n<p>Specifically, future minimum wage increases will be linked to the consumer price index (CPI) as well as the median wage level in the country.<\/p>\n\n\n\n<p>The commission has also determined that the minimum wage should increase at rates above inflation, so that wages grow in real terms and don\u2019t lose value.<\/p>\n\n\n\n<p>Factors considered by the Commission in the annual adjustment include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Inflation;<\/li>\n\n\n\n<li>The cost of living and the need to retain the value of the minimum wage;<\/li>\n\n\n\n<li>Wage levels and collective bargaining outcomes;<\/li>\n\n\n\n<li>Gross Domestic Product (GDP);<\/li>\n\n\n\n<li>The ability of employers to carry on their businesses successfully;<\/li>\n\n\n\n<li>The operation of small, medium or micro-enterprises and new enterprises; and<\/li>\n\n\n\n<li>The impact on employment or the creation of jobs.<\/li>\n<\/ul>\n\n\n\n<p>Following consultations in 2023, the department hiked the NMW by 9.62% for 2024. <\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>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.<\/p>\n\n\n\n<p>For 2024&#8217;s consultations, the result was more employer-friendly, in that the inflation-tied increase of 4.4% was implemented.<\/p>\n\n\n\n<p>While 2025&#8217;s consultations are only now starting, workers can at the very least expect an increase of 3%, given the current inflation levels.<\/p>\n\n\n\n<p>Based on the current monthly minimum of R28.79, employers should expect a new level upwards of R29.65 per hour.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The National Minimum Wage (NMW) Commission has issued a call for public input and submissions on adjustments to the NMW for 2026.<\/p>\n","protected":false},"author":10,"featured_media":796853,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[23],"tags":[18560],"class_list":["post-835488","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-government","tag-national-minimum-wage"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/835488","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=835488"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/835488\/revisions"}],"predecessor-version":[{"id":835494,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/835488\/revisions\/835494"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/796853"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=835488"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=835488"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=835488"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}