Written by sheldon

Update on the National Minimum Wage Bill (29th May 2018)

The National Minimum Wage Bill, which was expected to be passed before the May 1 deadline, is still not finalized as further consultation is needed to make it pass a Constitutional test.

What does the National Minimum Wage Bill state?

According to the Department of Labour, all workers should not be paid less than the set R20 minimum wage per hour. The below three sectors are however, excluded from the R20 per hour level for now, and the minimum wage for these sectors are as follows:

1. Farm/Forestry workers – R18 per hour (90% of the set minimum wage)

2. Domestic workers – R15 per hour (75%)

3. Workers on the Expanded Public Works Programme – R11 per hour (55%)

Learnerships will also have a separate arrangement, as set out in Schedule 2 of the National Minimum Wage Bill.

It should be noted that the National Minimum Wage does not include payment of allowances, payments in kind, tips, bonuses or gifts.

Could some companies be exempt from paying the minimum wage?

The Department of Labour is in the process of developing an online system to help analyse data submitted by employers when applying for national minimum wage exemptions. The exemptions cover employers who can demonstrate that they are not able to pay the national minimum wage.

Employers must note that there would be serious consequences in the case of misrepresentation of facts.

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