Wage Increase - March 2020

On 17 February 2020, the Department of Employment and labour has published the amendment to the National Minimum Wage in Notice 175 in Government Gazette 43026.

As from 01 March 2020, minimum wages will increase by 3.8%. Minimum wages will therefore be changed as follow:

National Minimum Wages - R20.76

Farm Workers - R 18.68

Domestic Workers - R 15.57

Workers employed on Expanded Public Work - R 11.42

For other increases follow the link and make sure you abide by the law: http://www.gpwonline.co.za/Gazettes/Gazettes/43026_17-2_Labour.pdf

A question that seems to pop up a lot has been, are benefits included?

We therefore would just like to put it out as a reminder, no they are not. The way any remuneration package is structured is restricted. The National Minimum wages excludes all allowances or benefits. One cannot argue that you pay less in minimum wage due to providing employees with lunch, uniform or housing allowances.

Make sure you take careful note of the above and ask your labour consultant for advice on implementing the changes, and preparing your company for this increase.

Please feel free to email your enquiry or comments to cj@bottomlineacc.co.za or if you need assistance in updating your payroll system, let us know. We can help.