The Minister of Employment and Labour has raised the NMW from R28.79 to R30.23 per hour.
Here is the breakdown:
- General Workers: R30.23 per hour
- Farm Workers: R30.23 per hour
- Domestic Workers: R30.23 per hour
- Expanded Public Works Programme (EPWP): R16.62 per hour
The Compliance Checklist
1. Update the Hourly Rate (Not just the Monthly Total)
The NMW is calculated per ordinary hour worked. It is a common mistake to simply look at the total monthly salary. If your employee’s hours fluctuate, their monthly pay must always reflect at least R30.23 for every hour they were on the clock.
2. Strip Away the “Extras”
A crucial rule of the NMW Act is that you cannot use “benefits” to make up the minimum wage. To be compliant, the R30.23 must be the base rate. You cannot include:
- Transport allowances or fuel money.
- The value of food or board provided.
- Performance bonuses or “tips” from customers.
- Gifts or discretionary payments.
3. Check for Sectoral Determinations
Some industries, like Contract Cleaning and Wholesale & Retail, have their own minimums that are often higher than the national average. For example, in 2026, many contract cleaners in metropolitan areas (Area A) must be paid at least R33.27 per hour. Always check if your specific industry sector overrides the general NMW.
4. Review Learnership Allowances
If you have employees on registered learnerships (under the Skills Development Act), their allowances have also increased. These are tiered based on the NQF level and the number of credits the learner has already earned. Ensure your training contracts are updated to match the 2026 Schedule 2 rates.
5. Observe the “Four-Hour Rule”
Under the Basic Conditions of Employment Act (BCEA), any worker who works for less than four hours on any given day must still be paid for at least four hours of work. At the new rate, this means a daily minimum of R120.92, even if they only worked for two hours.
6. Don’t Leave It to Chance
Navigating annual wage hikes alongside tax year-end can be overwhelming for small and medium sized businesses. At Pay Solutions, we automate these updates so you never have to worry about a “non-compliance” notice arriving in your inbox.
Is your payroll ready? Contact Pay Solutions today and start the new tax year with confidence.
