The National Minimum Wage (NMW) Commission has proposed a Consumer Price Index (CPI) + 1.5% adjustment to South Africa’s national minimum wage for 2025. This recommendation, published in the government gazette on 18 December 2024, is part of the annual review process outlined under the National Minimum Wage Act (NMWA), No. 9 of 2018.
The proposed adjustment reflects the Commission’s commitment to balancing workers’ financial needs with the broader economic context.
What Is the National Minimum Wage in South Africa 2025?
Here’s what you need to know:
Current Minimum Wage Rates
- General Workers: R27.58 per hour
- Farm Workers and Domestic Workers: R27.58 per hour (same as the general rate)
- Expanded Public Works Programme (EPWP): R15.16 per hour
The national minimum wage is the legal threshold below which employers cannot remunerate employees for ordinary hours worked. Paying below this minimum is unlawful.
Proposed Adjustment for 2025
The NMW Commission recommends a CPI + 1.5% adjustment. The CPI, which measures the changes in consumer prices, serves as a critical metric for determining this annual adjustment. As of November 2024, South Africa’s CPI stood at 2.9%. However, the December CPI, to be published in January 2025, will determine the final adjustment rate.
If accepted, this new wage rate will take effect on 1 March 2025.
How the NMW Adjustment Is Determined
The NMW Commission considers several factors to determine annual adjustments, including:
- Inflation: To maintain the wage’s value against rising costs of living.
- Cost of Living: Ensuring workers can afford basic necessities.
- Collective Bargaining Outcomes: Reviewing negotiated wage levels in various sectors.
- Economic Factors: Assessing GDP growth and the sustainability of businesses, particularly small and medium enterprises.
- Impact on Employment: Evaluating how adjustments affect job creation and retention.
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Opportunities for Public Input
The Commission invites public participation in shaping the 2025 adjustment. Written representations can be submitted to the following:
- Email: nmwreview@labour.gov.za
- Post: Directorate: Employment Standards
Department of Employment and Labour
Private Bag X117, Pretoria, 0001
Deadline: Submissions must be received by 14 January 2025.
The Role of the NMW Commission
Under the NMWA, the Commission’s responsibilities include:
- Reviewing and recommending adjustments to the national minimum wage annually.
- Assessing the wage’s impact on the economy, employment, and income inequality.
- Publishing annual reports for public and ministerial review.
What Happens Next?
- The Employment and Labour Minister will announce the final adjustment in February 2025.
- The updated minimum wage will be implemented starting 1 March 2025.
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Why the NMW Matters
The national minimum wage is a vital tool for reducing income inequality and improving living standards for South Africa’s workforce. By aligning adjustments with inflation and other economic indicators, the NMW ensures fair compensation while supporting business sustainability and employment growth.
The proposed adjustment to South Africa’s national minimum wage for 2025 reflects a careful balance between economic realities and the need to support workers. By incorporating public input and relying on thorough economic analysis, the NMW Commission aims to ensure that the minimum wage continues to provide meaningful financial support to employees while promoting sustainable business practices. As the process unfolds, staying informed and engaged will help ensure the final decision benefits all stakeholders in the South African economy.
