Minimum Wage Increase

Effective 01 March 2023, the minimum wage of R23.19 per hour will increase by approximately 9.6%, well ahead of the annual inflation rate of 6.9%. This will increase the minimum wage to R25.42 per hour. On Tuesday, 21 February 2023, the Employment and Labour Minister, Thulas Nxesi, announced the hike in the minimum wage.

Employers should note that this increase excludes allowances paid to employees for work-related expenses, such as transportation and accommodation. It also excludes any previously agreed-upon bonuses.

Although the minimum wage will increase, employees, including domestic workers, will still be vulnerable to price increases in South Africa this year. Prices for food, electricity, and transportation, among other things, are expected to continue rising.