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Commission recommends CPI + 1.5% increase for the national minimum wage in 2025


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Commission recommends CPI + 1.5% increase for the national minimum wage in 2025

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19th December 2024

By: Schalk Burger
Creamer Media Senior Deputy Editor

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The National Minimum Wage (NMW) Commission has published a recommendation in the Government Gazette that the national minimum wage be adjusted by the rate of consumer price inflation (CPI) plus 1.5% from March 2025.

The NMW Commission has called for the public to submit written representations on the recommendation. The proposal for the national minimum wage follows a recent invitation for written representations on potential adjustments to South Africa’s NMW for 2025.

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The CPI measures changes in the prices paid by consumers for goods and services over time, and is a key consideration for the commission. South Africa’s CPI in November stood at 2.9%, which is a slight increase from 2.8% in October.

"The rate of inflation that will be implemented as part of the national minimum wage will be the inflation rate six weeks prior to March 1, namely the December CPI published in January," the Department of Employment and Labour said in a statement.

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The national minimum wage in South Africa for this year is R27.58 an hour, which is applicable to all workers, including farm workers and domestic workers. However, workers employed under the Expanded Public Works Programme (EPWP) have a minimum wage of R15.16 an hour.

The minimum wage represents the lowest remuneration that employers are legally permitted to pay their employees for each ordinary hour worked. It is illegal for employers to pay their employees less than this minimum threshold, the department said.

The commission is responsible for annually reviewing and recommending adjustments to the national minimum wage. It also investigates and reports annually to the Employment and Labour Minister on the impact of the national minimum wage on the economy, collective bargaining and income differentials, and makes this information available to the public.

The public has until January 14 to make written representations.

The Employment and Labour Minister will announce the new rate of adjustment in February, which will take effect from March 1, 2025.

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