The South African government has recently announced an increase in the National Minimum Wage (NMW), effective from March 1, 2025. The new minimum wage has been adjusted from R27.58 to R28.79 per hour, marking a 4.4% increase. This adjustment aims to address the rising cost of living.
Key Points of the New Minimum Wage
Increased Rate: The NMW has been increased to R28.79 per hour for all workers, including domestic and farm workers.
Expanded Public Works Programme: Workers on this program will receive a minimum wage of R15.83 per hour, up from R15.16.
Impact on Workers and Employers
The increase in the minimum wage is expected to have a significant impact on both workers and employers. For workers, especially those in vulnerable sectors like domestic and farm workers, this increase may cause employers to potentially cut jobs.
This increase comes just before the Budget Speech where an increase in tax rates are expected and the removal of medical aid tax credits.
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