South Africans have a reason to smile after the recently announced minimum wage in the country, which has ensured equal pay across a majority of SA workgroups. Farmworkers and domestic servants have not been left behind as they will also receive 100% of the national minimum wage in South Africa, unlike other years when they received a lower percentage. The new implementations were effected from 1st March 2022.
South Africa is one of the countries in the continent with a high cost of living. The SA minimum wage is barely enough to sustain citizens’ basic needs and bills such as transport and electricity. The increase in costs has been influenced by local and international factors and is expected to go higher in the near future. FNB reveals that poorer residents will be affected on a larger scale.
What will the minimum wage be in 2022 in South Africa?
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Employment and Labour Minister Thulas Nxesi announced that the 2022 national minimum wage in South Africa is R23.19 for every standard hour worked. This is a 6.9% increase from the 2021 labour rate per hour, which was implemented at R21.69.
This year’s rate was equal for all workgroups, including farmworkers and domestic servants, who will also receive R23.19 as the minimum pay. The wage will represent a 21.5% increment for domestic servants since 2021. The decision is part of South Africa’s agenda to achieve equal pay for all labourers.
The National Minimum Wage Commission had earlier proposed a 100% increment of the National Minimum Wage (NMW) for domestic servants instead of the 88% set in 2021. The rate had initially been set at 75% in 2020.
All labourers under the expanded public works programme will get a rate of R12.75 per hour in 2022. Employed individuals that have finished learnership contracts demonstrated in section 17 of the Skills Development Act, 1998 (Act No 97 of 1998), should receive allowances detailed in schedule 2.
The rates announced by Minister Thulas Nxesi are in accordance with terms of Section 6 (5) of the NMW Act, No 9 of 2018, to amend the NMW contained in Schedule 1 and Schedule 2 of the National Minimum Act, published under Government Notice No. 44136. South African employers are not supposed to make changes to working conditions, including hours worked when implementing the 2022 minimum salary in South Africa.
The set minimum wage in South Africa per month is only applicable to the nationally recognized standard hours of work. Allowances such as meals, housing, airtime, and transport are not included. Gifts, bonuses, tips and payments in kind are also not part of the proposed implemented wage.
Factors considered when implementing minimum wages in South Africa
According to the National Minimum Wage Act of 2018, the NWM Commission is supposed to review labour rates yearly. They then propose recommendations to the Employment and Labour Minister on the necessary changes that should be made.
Factors considered when calculating the adjustment include;
- Inflation, cost of living, and the need to maintain the amount of minimum pay
- National GDP
- Pay levels and collective bargaining results
- Employers’ ability to proceed with business operations without difficulty
- The likely impact of the proposed rate on employment or the creation of work opportunities
The minimum wage in South Africa in 2022 has been a major boost to all worker groups across the country. However, the increment may not be enough to curb the ever-increasing cost of living. Employers should also give the employees their legally recommended dues without altering the working conditions.
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Source: Briefly News