As from 1 October 2025, the South African national minimum wage will be increased to R28.79 per hour from R27.58 per hour. The adjustment will be for all ordinary workers, including domestic workers and farm workers, aligning their wages to a common standard. Meanwhile, an EPWP worker will be paid a slight increase, i.e., R15.83 per hour instead of R15.16.
Equalization of Wages Between Sectors
Essentially, the major change effected by this update is that, whereas domestic workers were formerly charged a lower amount, they shall now be paid a minimum wage that is equal to that in any other trade, namely, R28.79 per hour. This alignment is to set the country on the road to remedying wage inequalities given in all forms of labor.
Who Does the New Wage Law Affect?
In essence, the new minimum wage rules will cover almost all workers in South Africa, regardless of whether they are employed full- or part-time, or even on a seasonal or agency basis. Included sectors stretch from manufacturing, retail, services, and tourism to agriculture and domestic work. One of the very few exceptions include those under certain training or apprenticeship programs whereby different pay mechanisms may apply.
Potential Effects and Economic Challenges
Increase in minimum wages thus serves double possibilities of potential benefits-due to the increase in the workers’ wages, schemes are in place to improve consumer demand and stimulate economic growth-and disincentives-such as cost increases in doing business for small business establishments which cannot absorb the additional wage burden affecting price hikes and employment, and sometimes automation. Incomes may also widen the gap of inequality as well as help lower earnings offset the impact of inflation.
But the opposing view is that if the wage floor is set too high, it will increase costs for those small businesses that cannot absorb the extra wage burden. Depending on the situation, this will result in price hikes, less hiring, or increased automation. In the informal or unregulated sectors, those workers might yet be missing out on enforcement of this new law. An increase in wages without a corresponding increase in productivity will worsen inflation and eliminate the real benefits of higher wages.
Enactment & Advised Workers
The law shall become effective 1 October 2025, and on that date, employers and inspectors shall begin its satisfaction. It is important for workers to know and check if their payslips indicate the correct rate and to claim their legitimate compensation.
If there is any suspicion of underpayment, workers could take the matter up with the labour authorities or their trade union for redress. Meticulous records of the hours worked and wage statements will be evidence on support of such claims. The commission responsible for setting up minimum wages and other inspection agencies will verify compliance with the law and act in all cases of violation.
Also Read: SASSA Grant Payments October 2025: Full List Of Dates And Updates