The daily rate for a worker working eight hours has now increased to a minimum of R241,84 per day and those who work nine hours a day, a minimum of R272,07 per day. Therefore, the weekly rates have increased to R1209,20 and R1 360,35 respectively and the monthly rate has increased to R5 239,46 and R5 894,40 respectively. These wage calculations exclude any additional benefits, allowance, overtime and/or tips which may be applicable.
Exceptions to National Minimum Wage
Excluded from the national minimum wage increase are workers employed on an expanded public works programme. However, they have also had their national minimum wage increased from R15.83 to R16,62 per hour. Similarly, workers engaged through learnerships in terms of the Skills Development Act 97 of 1998, have had their allowances increased to between R455,00 to R2, 654.04 (depending on the learner's credits and NQF level, as set out in Schedule 2 of the government gazette).
Notably, employers in the wholesale and retail sectors are required to increase their minimum rates in line with the new national minimum wage which depends on the job category, the lowest of which is in line with the national minimum wage at R30,23 per hour, while those in the contract cleaning sector must pay their employees a minimum of R33,27 per hour in metropolitan areas and R30,33 per hour in rural regions, respectively.
Duty of Employer
Employers who employ employees at the national minimum wage, are urged to review their employees' wages to ensure compliance with the above-mentioned increased wage or apply for an exemption where such wages cannot be met. Non-compliance with the national minimum wage exposes an employer to risk of fines enforced by the inspectorate and/or CCMA arbitration.
Earnings Threshold
On 17 April 2026, the Minister also published a government gazette providing for an increase in the earnings threshold in terms of section 6(3) of the Basic Conditions of Employment Act 75 of 1997 (“BCEA”) increasing it from R261,748.45 per annum to R269,600.90 per annum (being R22,466.74 per month). This increase will take effect from 1 May 2026 and represents an approximate 2,9% increase from the previous threshold.
The BCEA earnings threshold determines which employees are excluded from certain protections provided for by the BCEA, such as limitations on working hours and the entitlement to overtime pay, as well as certain other protections provided for by the Labour Relations Act 66 of 1995.
For those employers who pay employees at or around the BCEA earnings threshold, it is necessary for such employers to review their employees’ remuneration and to evaluate whether certain of its employees will now fall below the new earnings threshold.
If employees earn below the earnings threshold, employers must be aware that such employees are now entitled to additional basic conditions of employment such as the payment of overtime, limited working and overtime hours, daily and weekly rest time, meal intervals and additional pay for work on Saturdays, Sundays and public holidays.
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