The National Minimum Wage (NMW) was agreed upon by parties to the National Economic Development and Labour Council (NEDLAC) on Wednesday, 08 February. The Congress of South African Trade Unions (COSATU) did however not sign the agreement.

It was agreed that the implementation date should be no later than 01 May 2018. The level of the national minimum wage will be R20 per hour.

This translates to about R3,500 per month for those working 40 hours per week and about R3,900 per month for those who work 45 hours per week.

Employers will not be allowed to alter conditions of employment and hours of work downwards because of the introduction of the NMW. This will be regarded as non-compliance and/or unfair labour practice.

No business will be excluded from the NMW. However, businesses which cannot afford the national minimum wage will be able to apply for exemption, lasting a year. Mitigating measures will be put in place to assist fragile businesses and sectors to avoid plant closures and massive job losses.

The national minimum wage will be adjusted annually by the NMW Commission.

Once this is signed into law, an updated news flash will be distributed.


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