In a significant development for workers across the country, the South African government has officially increased the National Minimum Wage (NMW) for 2025. The new wage rate came into effect on 1 April 2025, following an official announcement by the Department of Employment and Labour.
This move is designed to protect the livelihoods of the country’s most vulnerable workers and ensure wages keep pace with the rising cost of living. So, what exactly has changed? Let’s break down the latest update, how it affects workers and employers, and what to expect moving forward.
New National Minimum Wage for 2025
The minimum wage has been increased from R27.58 to R28.79 per hour. This adjustment represents a 4.38% increase, reflecting the government’s continued efforts to improve earnings for the working class while balancing economic growth and employment sustainability.
This updated rate is the standard minimum across all industries, unless specified otherwise by sectoral agreements. It applies to all ordinary hours worked and cannot be reduced or negotiated downward by employers.
How the Increase Affects Different Sectors
While the R28.79 rate applies broadly, some sectors have specific provisions due to the nature of the work and existing collective agreements.
In the Expanded Public Works Programme (EPWP), for example, workers will now earn R15.83 per hour, up from R15.16. This applies to individuals employed in temporary, short-term public projects designed to create jobs.
Meanwhile, in the contract cleaning sector, regional variations apply. Workers in metropolitan areas like Cape Town, Johannesburg, Pretoria, and Durban will now earn approximately R31.69 per hour, while those in other regions will earn slightly less, around R28.89. Rates in KwaZulu-Natal are determined through a separate bargaining council.
These industry-specific minimums are intended to reflect differences in cost of living and working conditions in each sector or region.
Who Is Covered – and Who Isn’t
The 2025 minimum wage applies to all workers in South Africa, whether full-time or part-time, permanent or temporary. However, there are a few exceptions.
Members of the South African National Defence Force, the National Intelligence Agency, and the South African Secret Service are excluded. Volunteers and unpaid interns are also not covered, as they do not receive remuneration.
It’s important to note that the NMW does not include benefits like transport, meals, accommodation, bonuses, tips, or any other allowances. These cannot be used to offset the hourly wage requirement.
Legal Responsibilities for Employers
With this wage adjustment now in effect, employers must immediately ensure they are compliant. Paying below the new minimum wage is a violation of labor law and may result in penalties, fines, or even prosecution.
To reinforce compliance, the Department of Employment and Labour is expected to increase its inspection and enforcement capacity significantly. Businesses will face stricter audits, particularly those with a history of non-compliance.
Employers are also reminded that they may not reduce workers’ hours or manipulate working conditions to avoid paying the new wage rate. Such behavior is considered unfair labor practice under South African labor legislation.
Government’s Message to the Nation
Speaking on the wage adjustment, Minister of Employment and Labour Nomakhosazana Meth emphasized that the decision reflects the government’s commitment to addressing poverty and income inequality. The updated minimum wage aims to preserve the dignity of workers and ensure that employment leads to meaningful, sustainable livelihoods.
This increase is also part of South Africa’s broader social protection strategy, helping workers manage the effects of inflation and the rising cost of basic necessities.
What Workers and Businesses Should Do Next
For workers, it’s essential to know your rights. If you are not receiving the correct minimum wage, you have the right to lodge a complaint with the Department of Employment and Labour.
For businesses, this is the time to review payroll systems, update employment contracts if needed, and engage HR teams to ensure full compliance with the law. Staying ahead of wage legislation helps build better labor relations and avoids costly penalties.
Final Thoughts
The 2025 increase to South Africa’s National Minimum Wage is more than just a number it’s a move toward fairness, economic dignity, and a better future for millions of workers. While the increase may pose short-term challenges for some businesses, it sets a foundation for a more equitable workforce.
Both employers and employees must understand what this means and take the necessary steps to align with the new legal standards. As the country continues to recover from past economic setbacks, policies like these are crucial in building a more inclusive, just, and balanced society.