National minimum wage and Earnings threshold

On 7 March 2025, the Minister of Employment and Labour gazetted a new earnings threshold of R261 748.45 per annum or R21 812.37 per month.

In terms of the Basic Conditions of Employment Act (BCEA), all employees earning in excess of the earnings threshold, are excluded from the ambit of certain sections of the BCEA, which primarily deal with:

· ordinary hours of work;

· overtime;

· compressed working week;

· averaging of hours of work;

· determination of hours of work by Minister;

· meal intervals;

· daily and weekly rest period;

· pay for work on Sundays;

· night work (section 17(2) that deals with transport and night shift allowances); and

· public holidays (section 18(3) that deals with payment for work on a public holiday that falls on a day on which the employee would ordinarily not have worked).

All employees earning under the threshold amount have the full protection of every section of the BCEA. The new earnings threshold will come into effect from 1 April 2025.

The national minimum wage (NMW), will increase with effect from 1 March 2025. There will also be an increase of the minimum wage in certain specified sectors.

The minimum wage of R27,58 per hour will increase to R28,79 per hour (an increase of approximately 4,4%). 

The new minimum wage sets a new baseline across all sectors, with a few exceptions.

Farmworkers and domestic workers
The minimum rate for farm workers and domestic workers remain on par with the NMW at R28,79 per hour.

Exceptions
The exceptions are as follows:

· Workers employed on Expanded Public Works: R15,83 per hour

· Workers with learnership agreements in terms of the Skills Development Act:

Increases in other sectors
Employers in SD9: Wholesale and Retail Sector will have to increase their minimum rates (which depends on the job category, the lowest of which is in line with the NMW at R28,79 per hour). 

Employers in the SD1: Contract Cleaning Sector will also have to increase their minimum rates, with a R31,69 minimum in metropolitan areas and R28,79 in certain rural areas). 

Allowances, etc?
Employers are reminded that the NMW 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.

Exemption
There is provision for employers to apply for exemption. The National Minimum Wage Exemption System is accessible online at https://nmw.labour.gov.za.