The Revised National Minimum Wage Act 9 of 2018
Thursday, 31 January 2019
Posted by: Tasveera Singh
On January 1, 2019, the National Minimum Wage Act 9 of 2018 came into effect.
The Act is applicable to all employees and employers, except for members of the South African National Defence Force, the National Intelligence Agency, the South African Secret Service and volunteers that perform work for another person without compensation.
For each ordinary hour worked, the National Minimum Wage is R20.00. There are, however, some exceptions. Farm workers are eligible to receive a minimum wage of R18.00 per hour. Domestic workers are eligible to receive a minimum wage of R15.00 per hour. Workers that are employed by an Expanded Public Works Programme are entitled to receive R11.00 per hour. Those employees that have signed learnership agreements as reflected in section 17 of the Skills Development Act 97 of 1998, are entitled to receive allowances as stated under schedule 2 of the Act. The National Minimum Wage Commission will review the National Minimum Wage for farm workers and domestic workers within the next 18 months from the commencement date of the Act (1 January 2019).
Workers are entitled to receive a National Minimum Wage for hours worked on any day. In instances, whereby a worker works less than four hours on any day, the worker must be paid for four hours on that day.
This Act is relevant to employees who earn less than the earnings threshold given by the minister which is R205, 433.30. Employers should amend their contracts of employment which makes reference to the National Minimum Wage. Any unilateral changes to wages, hours of work, other conditions of employment related to the implementation of the National Minimum Wage act will be seen as unfair labour practice.
In terms of section 96 of the Labour Relations Act 66 of 1995, registered employers’ and employers’ organisation acting on behalf of a member, may apply for an exemption from paying the National Minimum Wage. The application must be lodged on the National Minimum Wage Exemption System in which specific criteria must be followed.
For more information contact Prishana Maharaj 031 831 3201.
Prishana Maharaj | Master Builders KwaZulu-Natal