South African Employers and Workers
By Lerato Mpembe
In a significant development for South African employers and workers, the National Minimum Wage (NMW) has been adjusted for 2025. Effective from 1 March 2025, the NMW has increased from R27.58 to R28.79 per ordinary hour worked. This adjustment applies uniformly to all workers, including farm and domestic workers. 
For employers with full-time domestic workers employed from Monday to Friday, this translates to a minimum monthly wage of approximately R5,182.20, assuming a standard 45-hour workweek. This figure is derived by multiplying the hourly rate by the total number of hours worked in a month. 
The NMW Commission recommended this increase by adding 1.5% to the Consumer Price Index (CPI) to ensure that the minimum wage keeps pace with inflation and maintains the purchasing power of workers. The Employment and Labour Minister announced the new rate in February 2025, with implementation set for 1 March 2025. 
It’s important to note that the NMW represents the lowest remuneration that employers are legally permitted to pay their employees for each ordinary hour worked. Paying below this threshold is illegal. Employers who genuinely cannot afford the NMW can apply for an exemption through the Department of Employment and Labour. 
The Congress of South African Trade Unions (COSATU) has welcomed the increase, highlighting the progress made since the NMW’s inception in 2019, when it was R20 per hour. The federation emphasizes that the NMW has significantly improved the wages of domestic and farm workers, who previously earned as little as R6 per hour. 
However, the South African Federation of Trade Unions (SAFTU) argues that the current NMW is still insufficient to sustain workers and their families, especially given the rising costs of essential goods and services. They advocate for a more substantial increase to ensure a decent standard of living for all workers. 
Employers are urged to comply with the new NMW to avoid legal repercussions and to contribute to the broader goal of reducing income inequality in South Africa. The Department of Employment and Labour has mechanisms in place to enforce compliance and address any disputes arising from non-compliance. 

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