The national minimum wage (NMW) is the lowest wage rate an employer can pay a worker per hour, per day, or per month in South Africa, according to law. It was set in 2019 to protect low-wage workers vulnerable to exploitation and the ones whom it also sought to shrink inequalities in their pay. The NMW is reviewed yearly by the National Minimum Wage Commission, which considers variables such as rates of inflation, cost of living, levels of employment, and sector-specific dynamics.
The Minimum Wage Increase for 2025
In 2025, the National Minimum wage will see major changes with its adjustment. It will increase from R27.58 per hour to R28.79 per hour for the general rate. Domestic and farm workers now receive R28.79/hour, thus putting them on par with the general working population. EPWP workers will have their rate increased from R15.16 to R15.83 per hour. Certain industries and sectors, however, may still continue to bargain or impose higher minima through bargaining councils or jurisdictional agreements (e.g., contract cleaning in major metros, wholesale or retail).
Who Qualifies & Covered Sectors
A widespread approach is taken in setting the minimum wage across industries, allowing for very few exceptions. It applies to full-time, part-time, temporary, seasonal, and casual employees working directly with an employer or through a labor broker, including the following sectors:
- Manufacturing
- Services
- Retail
- Agricultural and domestic work
- Hospitality and tourism
Among the exceptions are learnership or apprenticeship contracts, which may cater for special rates under regulated schemes.
Rates By Sector & Special Cases
While R28.79 is the hourly rate for the minimum wage, higher or lower rates are often paid, depending on the sector:
- High-powered contract cleaning areas may negotiate higher minimums
- Special local arrangements may differ for rural or smaller municipalities
- Given the nature of work under the programme, EPWP remains lower at a rate of R15.83
It is advisable for workers to investigate and determine what rate applies within their own sector or region, as site and industry agreements may act to overlie the national standard.
Economic Impacts & Challenges
Eventually, the balance in minimum wage determination always comes down to trade-offs. On the plus side, it means more income for workers to be used for consumption, thus increased consumer spending and in turn stimulation of economic growth. Some projections even foresee a slight increase in GDP coming through.
However, Some Clouds Gather:
- Cost burden on employers: Small-scale businesses, especially in those sectors that are labor-intensive, find it most difficult to absorb any kind of increase in labor cost.
- Informal sectors’ compliance: In many cases, enforcement is weak for workers working in unregulated markets.
- Inflationary pressure: However, if the inflation suppresses the benefits of wage increases, it will usually do so if wage increases are in excess of productivity growth.
- EPWP disparity: The difference between ‘EPWP wages’ and general NMW raises issues of equity for social programme workers.
When Changes Took Effect And What To Do
The new rates are supposed to have come into force on 1 March 2025. Employers, workers, and labor inspectors are henceforth expected to apply these updated rates. Workers who suspect underpayment should verify their payment slips against known sector rates and, if necessary, lodge a complaint with the Department of Employment and Labour or the relevant bargaining council.
Also Read: SASSA R350 SRD Grant October 2025: Full Payment Calendar & Tracker