Skip to content. | Skip to navigation

You are here: Home / Salary / Minimum Wages / Minimum Wage FAQs

FAQs on Minimum Wages in South Africa

Frequently Asked Questions about Minimum Wages in South Africa, Who Earns Minimum Wages, When are Minimum Wages adjusted and more on Mywage South Africa.
Complete our Salary Survey and Win a Wage!

 

Frequently Asked Questions Minimum Wages as per Law
There is no national (statutory) Minimum Wage. However, the Basic Conditions of Employment Act (BCEA) permits the Minister of Labour to set minimum terms and conditions of employment, including Minimum Wages. They are in place in areas of economic activity where labour has been deemed vulnerable. These are in nine sectors:

Domestic work sector
Contract cleaning
Private security sector
Wholesale and retail
Farm worker sector
Forestry sector
Taxi sector
Learnerships
Children in the performance of advertising, artistic and cultural activities

If a sector or area is not considered vulnerable, there are no minimum wages, regardless of the fact that some employees in that sector or area may be paid very low wages.

Yes, more than one minimum wages exist which are determined by law.
Minimum wages are determined at national, regional, sectoral and occupational/skill level.
Minimum wages is calculated at daily, hourly, weekly and monthly basis.
Department of Labour,  Employer organisations at company and plant level, All registered trade unions and trade union confederations. Other than that Minimum Wages are included in centralised and decentralised bargaining at company (single employer) and plant level.
In the case of sectors which fall under the Department of Labour minimum wages are adjusted Unilaterally by the government.  In the case of sectors which are covered by a collective agreement concluded at a Bargaining Council or through centralised or decentralised barganing at company or plant level, it is adjusted After consultation of employer and trade unions representatives
Minimum Wage is a fixed component which is adjusted annually. Upratings are mostly calculated three to four years in advance, and are normally fixed for one year.
Upratings are usually calculated based on the Minimum Wage for the sector, + CPIX/CPI + 1%
The national poverty line is R515.00
The national poverty line was created in 2008 and has not been adjusted since then.
The national poverty line was created in 2008 and has not been adjusted since then.
The (lowest) average Minimum Wage is around R1500 per month. The poverty line is R515 per month. Therefore the percentange of Minimum Wage is 200% more.
There is no comprehensive data to calculate.
The Department of Labour monitors Minimum Wages that fall under the departmental regulations. Inspectors from the Department of Labour make investigations about the implementation of labour laws, rules and regulations. There are 800 inspectors in the country.  Trade Unions monitor Minimum wages that are regulated through Bargaining Councils.  Employers (and employees) and trade unions monitor Minimum Wages that are included in centralised and decentralised bargaining at company (single employer) and plant level.
If a complaint is lodged with the Department if Labour concenring Minimum Wages, and an employer is found to be guilty of paying below the stated Minimum Wage, the employer can be fined. If a complaint is lodged with the Department if Labour concenring Minimum Wages, and an employer is found to be guilty of paying below the stated Minimum Wage, the employer can come to an arrangement with the employee to pay arrears.
Although the Minimum Wage system is in place, the reality is that South Africa’s numerous prescribed Minimum Wages are ignored 45% of the time, an investigation commissioned by the Department of Labour has found.  Although there are 800 inspectors charged with examining labour practice and Minimum Wages, there is still a very incidence of non-comliance, particuarly in the domestic work and agriculture sectors.
Employers and trade union representatives are involved in compliance procedures through the Department of Labour. All complaints are registered with the department.
Individuals can complain to the Department of Labour if they think they are earning less than the Minimum Wage. Trade Union members can also complain to their union representatives. Individuals can complain to the Department of Labour if they think they are earning less than the Minimum Wage. Trade Union members can also complain to their union representatives.

 

Also Check:

 

Complete our Salary Survey and Win a Wage!

 

Share |