Majority recommend CPI plus 3% increase in national minimum wage

The majority of commissioners at the National Minimum Wage Commission have recommended that the national minimum wage for next year increase by Consumer Price Index (CPI) plus 3%. 

The department of employment and labour announced on Thursday the commission was sitting with three proposals on its table after it issued another invitation to interested parties to submit written representations concerning next year’s wage increase. 

A minimum wage is the lowest remuneration employers can legally pay their employees for each ordinary hour worked. It is illegal for an employer to pay employees less than this minimum floor. 

The commission published a report in the government gazette and said the proposals tabled in the report are as follows: 

• Recommendation by the majority is CPI plus 3%. Eight of the 12 commissioners made that proposal;
• Recommendation by the business constituency is CPI; and
• Recommendation by an independent expert is CPI plus 0.75%. 

“The CPI is a measure of the change in prices as paid by consumers for goods and services over time. In South Africa, the latest consumer price inflation as published by Statistics South Africa was 5.9% in October 2023, up from 5.4% in September 2023."

The commission's latest invitation for inputs follows similar calls in August and September in accordance with the National Minimum Wage Act.  

The commission comprises representatives from organised labour, business, community and experts in the field of labour market and conditions of employment 

In terms of the act, the commission is tasked with reviewing the national minimum wage annually and to recommend adjustments, investigate and report to the minister of employment and labour on the impact of the increase on the economy, collective bargaining and the reduction in income differentials and to make such information available to the public. 

In 2021, the commission recommended increasing the national minimum wage from R20.76 to R21.69 per hour. The 2022 wage was revised from to R23.19 per hour. In 2023 the minimum wage was revised to R25.42 per hour. 

Factors considered by the commission in the annual adjustment include inflation, the cost of living, the ability of employers to carry on their businesses successfully and the impact on employment or the creation of employment 

Employment and labour minister Thulas Nxesi will announce in February the new rate of adjustment, which will come into operation from March 1. 

The public has until January 8 next year to make their written representations. 

Requests for inputs should be sent to the directorate of employment standards at the labour department to Private Bag Xl 17, Pretoria, 0001 or to nmwreview@labour.gov.za

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