The national minimum wage (NMW) will increase from R28,79 to R30,23 per hour with effect from 1 March 2026. Employment and Labour Minister Nomakhosazana Meth announced the change on Tuesday (3 February), confirming that the amendment will be legally binding from March.
The NMW is South Africa’s statutory labour market requirement and is subject to an annual review. Any violations of the Act are enforceable through fines issued by the Department of Employment and Labour’s inspectorate.
Meth said the upward adjustment of R1,44 per hour will benefit all workers, including vulnerable farm and domestic workers.
The NMW sets the minimum amount an employer is legally obligated to pay employees for ordinary hours worked. No employee may be paid below this rate. The NMW cannot be varied by contract, collective agreement or law, and it is considered an unfair labour practice for an employer to unilaterally alter hours of work or other conditions of employment when implementing the NMW.
The NMW also excludes allowances such as transport, tools, food or accommodation, as well as payments in kind, tips, bonuses and gifts.
However, the announcement has drawn criticism from TLU SA, which expressed regret over the decision to increase the NMW to R30,23 per hour.
According to the organisation, the decision was taken despite substantial and constructive input from organised agriculture, business and trade unions, all of whom warned about the fragile state of South Africa’s economic environment.
TLU SA further pointed out what it described as inconsistencies in the current approach, noting that workers in state programmes, employed under the Expanded Public Works Programme (EPWP), are remunerated at almost half the NMW. These workers’ wages will increase from R15,16 to R16,62 per hour.
“Job losses and impoverishment are seemingly treated as secondary issues, while the government focuses on administrative measures without considering sustainable solutions,” said Bennie van Zyl, general manager of TLU SA.
The organisation maintains that providing access to work at a lower, realistic wage for the approximately 34% of South Africans who are currently unemployed would be preferable to excluding them entirely from the labour market.
“Work creates dignity, experience, skills and opportunities for development. Keeping people dependent on social grants is not a sustainable solution and does not build a future,” Van Zyl added.
With the new NMW set to take effect in March, its impact on both workers and employers will come under scrutiny, particularly in sectors already under economic pressure.