National Minimum Wage
The National Minimum Wage (NMW) Commission has issued another invitation to interested parties to submit written representations concerning possible adjustments to South Africa’s national minimum wage in 2024. This move aims to gather opinions and recommendations from various stakeholders in order to determine the most suitable course of action for the upcoming year.
In a report published in the government gazette, the NMW Commission outlined three proposals on its table after issuing the invitation to interested parties. These proposals include a recommendation by the majority for Consumer Price Index (CPI) plus 3%, a recommendation by the Business Constituency for CPI, and a recommendation by an independent expert for CPI plus 0.75%.
The Consumer Price Index (CPI) measures the change in prices paid by consumers for goods and services over time. As of October 2023, the latest consumer price inflation in South Africa was 5.9%, up from 5.4% in September 2023. These figures provide valuable context for understanding the potential impact of the proposed adjustments to the national minimum wage.
Furthermore, the commission’s latest invitation for inputs aligns with the provisions of the National Minimum Wage Act, No. 9 of 2018. This demonstrates the commission’s commitment to engaging with the public and relevant stakeholders to ensure that the annual adjustment to the national minimum wage is founded on informed and inclusive decision-making processes.
The NMW Commission comprises representatives from organised labour, business, community, and experts in the field of labour market and conditions of employment. This diverse composition reflects the commission’s dedication to considering a wide range of perspectives and insights in shaping its recommendations for the national minimum wage.
It is worth noting that the annual adjustment of the national minimum wage is a crucial decision that impacts numerous aspects of the economy, including inflation, the cost of living, wage levels, and collective bargaining outcomes. Additionally, the commission takes into account factors such as gross domestic product, the ability of employers to sustain their businesses, and the impact on employment or the creation of employment.
Minister Thulas Nxesi is expected to announce the new rate of adjustment in February 2024, which will be effective from 1 March 2024. This timeline underscores the urgency and importance of the public’s written representations, as they will directly contribute to shaping the upcoming adjustments to the national minimum wage.
Interested parties have until 8 January 2024 to submit their written representations, providing ample time for individuals and organizations to articulate their perspectives and recommendations. Requests for inputs should be sent to the directorate: Employment Standards, Department of Employment and Labour, or emailed to nmwreview@labour.gov.za.
Minister Thulas Nxesi announces National minimum wage increases