Industry News

National Minimum Wage 2021 increase

South Africa's Minister of Employment and Labour, Thulas Nxesi has announced that the National Minimum Wage for each ordinary hour worked will, as of March 2021, increase from R20.76 to R21.69.

The National Minimum Wage Act was first proclaimed in 2018, setting a historic precedent in the protection of low-earning (vulnerable) workers in South Africa and provided a platform for reducing inequality and huge disparities in income in the national labour market. The National Minimum Wage was first implemented on 1 January 2019 at a level of R20 per hour.

In terms of the law it is considered unfair labour practice for an employer to unilaterally alter hours of work or other conditions of employment in implementing the National Minimum Wage. With effect from 1 March 2021, employers shall pay contract cleaning workers at least the minimum hourly wage as detailed in the schedule below.

Employment law service Labourwise reminded employers that 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.

Area A

Metropolitan Councils:

City of Cape Town, Greater East Rand Metro, City of Johannesburg, Tshwane and Nelson Mandela

Local Councils:

Emfuleni, Merafong, Mogale City, Metsimaholo, Randfontein, Stellenbosch, Westonaria.

Rate per hour: R23,87

Area B

All areas in KwaZulu-Natal NB: Conditions of employment for KwaZulu-Natal areas shall be subject to the agreement concluded in the Bargaining Council for the Contract Cleaning Service Industry KwaZulu-Natal (BCCCI)

Rate per hour: R24,36

Area C

In the rest of South Africa

Rate per hour: R21,77