National Minimum Wage March 2021
The National Minimum Wage (NMW) has been increased and finalized effective from 01 March 2021. This has a significant impact on what you are currently paying your employees. Let’s have a look into what it will be and how it may impact your company.
The minimum hourly rates for employees, including farm workers are increased to R21.69. The only employees excluded will be your domestic worker, which will be below this rate, but still increased to a R19.09 per hour rate.
The most common misconception on National Minimum Wage rates is that you can pay a cleaner at your company office the same as a domestic cleaner. The correct rate for a cleaner (under your employment) working at your company office will be the normal National Minimum Wage of R21.69 per hour. Only employees working at your home are defined as Domestic Workers and may be paid at the lower rate of R19.09 per hour.
The National Minimum Wage Act has been in effect since March 2019 with a steady increased adjustment each consecutive year. The aim of this act is to increase the incomes of the low paid. Employers found guilty of contravening this act will face paying serious penalties.
©Ubuntu HR Services 9 February 2021