Cabinet has approved the National Minimum Wage Bill, Basic Conditions of Employment Amendment Bill and Labour Relations Amendment Bill. These bills will now be submitted to the National Assembly and National Council of Provinces for concurrence and enactment.
In February, representatives from government, business, labour and the community sector signed agreements at the National Economic Development and Labour Council (Nedlac) on measures to strengthen labour stability and collective bargaining and on how to introduce a National Minimum Wage. The National Minimum Wage Bill (NMW Bill) makes provision for the introduction of a minimum wage of R20 per hour, which is due to come into effect on 1 May 2018.
There are a few exceptions to the national minimum wage which include the minimum wage for farm workers which will be 90 percent of R20 per hour – R18 per hour, the minimum wage for domestic workers which will be 75 percent of R20 per hour –
R15 per hour, and the minimum wage for workers on an Expanded Public Works Programme is R11 per hour.
Nedlac social partners agreed that the farm, forestry and domestic sectors will be brought up to 100 percent of the NMW within two years, pending research by the National Minimum Wage Commission. The Basic Conditions of Employment Bill, 2017 seeks to introduce amendments to the Basic Conditions of Employment Act, 1997 in line with the enactment of the National Minimum Wage Act, 2017.