The National Minimum Wage (NMW) Commission is inviting all interested parties to submit written representations concerning possible adjustments to the national minimum wage for 2022. These representations will be considered by the Commission before it publishes its annual report and recommendations on the annual review of the national minimum wage later in the year.

The NMW Act of 2018 enjoins the NMW Commission to annually review rates and make recommendations to Employment and Labour Minister on any adjustment of the National Minimum Wage, while also reflecting on alternative views, including those of the public.

In February, Minister TW Nxesi announced that the National Minimum Wage (NMW) for each ordinary hour worked has been increased from R20,76 to R21,69 for the year 2021 with effect from 01 March 2021.

In terms of the NMW Act of 2018, the policy instrument is a floor level below which no employee should be paid.

It is illegal and an unfair labour practice for an employer to unilaterally alter hours of work or other conditions of employment in implementing the NMW. The NMW is the amount payable for the ordinary hours of work and does not include payment of allowances (such as transport, tools, food or accommodation) payments in kind (boarding or lodging), tips, bonuses and gifts.

In considering the annual adjustment, the NMW Commission takes into account the following factors: inflation, the cost of living, and the need to retain the value of the minimum wage; gross domestic product; wage levels and collective bargaining outcomes; productivity; ability of employers to carry on their businesses successfully; the operation of small, medium or micro-enterprises and new enterprises; likely impact of the recommendation adjustment on employment or the creation of employment.

Source: Government of South Africa