The Challenge of Recruitment
2022-09-13Increased Earnings Threshold 2022
2023-02-24On 21 February 2023, the Minister of Labour and Employment passed new regulations increasing the minimum wage with effect from 1 March 2023. This regulation governs the minimum wages for:
- All employees who do not fall into specific categories listed below (including casual employees)
- Farm Workers
- Domestic Workers
- Workers employed in Public Works Schemes (cleaning verges Parks, Cemeteries etc.)
- Learners
The Regulations also provide new minimum wages for
- Contract Cleaners
- Employees in the Wholesale and Retail Industries.
The increase in the minimum wage is 9.6% and both the Contract Cleaning and Wholesale and Retail Industries minimum wages have also increased wages by this percentage. However, there have been substantial increases at the other levels. See table below:
| CATEGORY OF EMPLOYEE | RATE 2022 | RATE 2023 | INCREASE AMOUNT | PERCENT INCREASE | NEW MONTHLY SALARY (45 hours per week) |
| Minimum wage including Farmworkers and Domestic Workers | R23.19 | R25.42 | R2.23 | 9.6% | R4 953.09 |
| Public Work Employees | R12.75 | R13.97 | R1.22 | 9.6% | R2 722.05 |
| Contract Cleaners | R25.52 | R27.97 | R1.65 | 9.6% | R5 449.95 |
| Learner Level 1 – 2 | New Monthly Salary | ||||
| 0 -120 Credits | R349.04 | R382.55 | R33.51 | 9.6% | R1 656.44 |
| 121 – 240 Credits | R698.05 | R765.06 | R67.01 | 9.6% | R3 312.71 |
| Learners Level 3 | |||||
| 0 -120 Credits | R349.04 | R382.55 | R33.51 | 9.6% | R1 656.44 |
| 121 – 240 Credits | R657.38 | R720.49 | R63.11 | 9.6% | R3119.72 |
| 341 – 360 Credits | R1 076.19 | R1 179.50 | R103.31 | 9.6% | R5107.23 |
| Learner Level 4 | |||||
| 0 -120 Credits | R349.04 | R382.55 | R33.51 | 9.6% | R1 656.44 |
| 121 – 240 Credits | R698.11 | R765.13 | R67.01 | 9.6% | R3 312.71 |
| 341 – 360 Credits | R1 076.19 | R1 179.50 | R103.31 | 9.6% | R5107.23 |
| 361 – 480 Credits | R1 570.63 | R1 721.41 | R150.78 | 9.6% | R7 453.70 |
| Learner Level 5 – 8 | |||||
| 0 -120 Credits | R349.04 | R382.55 | R33.51 | 9.6% | R1 656.44 |
| 121 – 240 Credits | R756.20 | R828.80 | R72.6 | 9.6% | R3 588.70 |
| 341 – 360 Credits | R1 131.44 | R1 240.06 | R108.62 | 9.6% | R5 396.46 |
| 361 – 480 Credits | R1 593.94 | R1 746.96 | R153.02 | 9.6% | R7 564.34 |
| 481 – 600 Credits | R2 036.00 | R2 231.46 | R195.46 | 9.6% | R9 662.22 |
This increase is well above the inflation level currently and is an indication of moving the National Minimum Wage to a Living Wage.
It is to be noted that there is no requirement to implement an increase if the employee is already earning more than the minimum salary.