South Africa Announces 4.4% National Minimum Wage Increase for 2025

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Africa’s national minimum wage (NMW) is set to rise by 4.4%, increasing the hourly rate from R27.58 to R28.79, effective March 1, 2025.

This adjustment, announced by Employment and Labour Minister Nomakhosazana Meth, aims to protect workers’ earnings against inflation while supporting economic stability.

The increase follows recommendations from the National Minimum Wage Commission, which proposed an adjustment based on the Consumer Price Index (CPI) plus an additional percentage to ensure workers’ wages keep pace with rising living costs.

This marks another step in the government’s efforts to address wage disparities and improve living standards since the NMW’s introduction in 2019.

Key Details of the Adjustment:

• New Hourly Rate: R28.79 (up from R27.58).
• Effective Date: March 1, 2025.
• Coverage: Applies uniformly to farmworkers and domestic workers, who are now fully aligned with the general NMW.
• Exceptions:
  • Expanded Public Works Programme workers: R15.83 per hour.
  • Workers under learnership agreements: Rates vary as per government schedules.

Stakeholder Reactions

The increase has received mixed reactions from stakeholders:

1. COSATU’s Support: The Congress of South African Trade Unions (COSATU) welcomed the adjustment as a “progressive” measure that will benefit approximately 6 million workers, particularly in sectors like agriculture, domestic work, retail, and hospitality. COSATU emphasized that this increase will help safeguard workers’ purchasing power and stimulate economic growth by injecting more spending power into the economy.
2. AgriSA’s Concerns: While acknowledging the need for fair wages, AgriSA expressed concerns about the timing of the increase given challenges in the agricultural sector, including economic contractions and ongoing drought conditions. The organization highlighted the importance of balancing worker welfare with industry sustainability.
3. Broader Economic Impact: The adjustment is expected to provide relief to low-income workers while adding pressure on businesses already grappling with economic challenges such as inflation and fluctuating productivity levels.

Historical Context

Since its inception at R20 per hour in 2019, South Africa’s NMW has undergone annual reviews to align with inflation and labor market dynamics.

Domestic and farmworkers, who initially earned less than the standard NMW, have now achieved parity at R28.79 per hour—marking significant progress in addressing historical wage inequalities.

The government remains committed to ensuring that future adjustments consider both worker welfare and employer viability, as mandated by the National Minimum Wage Act.

For further details on sector-specific rates or exemptions, refer to government resources or contact the Department of Employment and Labour.

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