Kaya 959 Reporter
Many South African have received the announcement of the new 6.9% minimum wage increase well.
Earlier this week Labour minister Thulas Nxesi published the new minimum wage for South Africa.
The gazette published on Monday the 7th of February 2022, says the national minimum wage is now R23.19 for each ordinary hour worked.
This will be in effect as of the 1st of March 2022 which is a significant increase of 6.9% from the year 2021
Workers employed as part of the expanded public works programme are entitled to R12.75 per hour.
Guguletthu Mfuphi was recently joined on Kaya Biz by Mamokgethi Molopyane, Mining and Labour Analyst as well Jeanie Leonie, Commercial Executive at Workforce Staffing to unpack what this will mean for South African employers and employees.
Though national minimum wage is the amount payable for the ordinary hours of work it doesn’t include payment of allowances such as transport, tools, food or accommodation) payments in kind as well as tips, bonuses and gifts.
Jeanie Leonie spoke about why the announcement was important and what this means for many South Africans.
“If you take into account the factors that benefit the employee it might outweigh the negatives that the business might see in terms of an increase in the national minimum wage.”
“The introduction of the minimum wage three years ago really prioritise businesses such as mines to adapt their business accordingly, to budget accordingly.”
“It’s necessary to introduce a minimum wage to address wage gaps, particularly with reference to our vulnerable employees. Many businesses might see the 6.9% increase as a massive hike, but it certainly doesn’t come as a surprise.” says Leonie.
