The Department of Employment and Labour have communicated that the general National Minimum Wage will increase from R20 per hour to R20.76 as from 1 March 2020.
This represents a 3.8% increase right off the back of the CPI figures. Said increase also applies to the following workers and rates:
- Farm workers new minimum of R18.68;
- Domestic workers new minimum of R15.57; and,
- Expanded public works programme workers new minimum of R11.42.
The announcement also includes the new rates applicable to learners on learnerships as well as the Contract Cleaning, Wholesale and Retail Sectors that fall under the jurisdiction of the particular Sectoral Determinations.
We believe that this is a reasonable increase given the current headwinds being experienced in South Africa. The fact that it is linked to CPI reflects a balanced and responsible approach as employers face a raft of legislative amendments and greater compliance requirements attached to regulatory amendments and new statutes.
From an Adcorp point of view, we will be identifying and engaging with clients who are impacted by these amendments in order to ensure that we are payroll ready by 1 March 2020.
In addition, we extend an invitation to the market and our clients to engage with us in respect of any matters pertaining to this change or any other challenges your business may be facing.
Across the Group we have a number of end-to-end workplace solutions solving a wide range of business challenges. We search, place, develop, train and manage people for temporary and permanent job opportunities. We also supply people resources on an outsourced basis and manage people-intensive processes on behalf of our clients. Our mission is to build workplaces and careers of the future by transforming the places we work in. We do this by connecting potential.