2021 annual review of the national minimum wage

The 2021 annual review and adjustment of the national minimum wage for South Africa was published in the Government Gazette on 8 February by the Labour Minister Thulas Nxesi. 

The new national minimum wage is R21.69 per hour, an increase of 4.5%. 

The national minimum wage excludes allowances that are paid to enable employees to work (such as transport and equipment), or payment in kind (such as board or accommodation), as well as bonuses, tips or food.

Farm Workers

Farm workers’ minimum wage is now equal to the national minimum wage for the first time, after earning 10% less in the past year.

Domestic Workers

The minimum wage for domestic workers is still below the national wage, but has been hiked by 23% this year – and should be on par by 2022.

R19.09, a hike of almost 23%. The commission wants the minimum wage for domestic workers – who still, even after the latest increase, earn 12% less than other minimum wage workers – to be exactly the same as the national wage by next year.

Apart from house cleaning work, domestic workers also include gardeners, drivers and people who look after children, the aged, sick, frail or disabled in a private household (but not on a farm).

Public works programme workers

Workers employed on an expanded public works programme are entitled to a minimum wage of R11.93 per hour.

DETERMINATION: EARNINGS THRESHOLD

In line with the Basic Conditions of Employment Act, the earnings threshold has been increased to R211 596.30. 

All employees earning in excess of R211 596.30 are excluded from the application of sections 9,10,11,12,14,16,17(2) and 18(3) with effect from 1 March 2021.