South Africa | National Minimum Wage Increases Effective March 2025
On 4 February 2025, the Minister of Employment and Labour published Government Gazette 52053, amending Schedules 1 and 2 of the National Minimum Wage Act (NMWA). These amendments will increase the minimum wage rates effective from 1 March 2025.
The National Minimum Wage rates will increase as follows from 1 March 2025:
- From R27.58 to R28.79 for every ordinary hour worked.
- From R27.58 to R28.79 per hour for farm workers.
- From R27.58 to R28.79 per hour for domestic workers.
- From R15.16 to R15.83 per hour for workers employed on an expanded public works programme.
- Increased weekly allowances (see table below) for workers with learnership agreements under section 17 of the Skills Development Levies Act.
Employment Tax Incentive (ETI) Criteria
- One of the qualifying criteria for the Employment Tax Incentive (ETI) is that the employee must earn at least the higher of the applicable national minimum wage rate or the minimum rate specified by the wage-regulating measure. Employers should ensure that the updated minimum wage rates, effective from 1 March 2025, are reflected in the ETI minimum wage rate configuration.
Exemption Application
- Employers who cannot afford to pay the national minimum wage can apply online for an exemption from the National Minimum Wage Act.
Additional Amendments
- The Gazette also increases the minimum wages for the Contract Cleaning Sector (Sectoral Determination 1) and the Wholesale and Retail Sector (Sectoral Determination 9) to align with the national minimum wage rates.
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