How to understand the impact of the National Minimum Wage

If you are a domestic worker or farm worker it is important that you know how to understand the National Minimum Wage and how it impacts you. 

Employment and Labour Minister Nomakhosazana Meth has announced an increase in the National Minimum Wage (NMW) for 2026. The hourly rate has gone up from R28.79 to R30.23 for every hour worked.

From 1 March 2026, this new rate becomes legally binding. This means employers must pay at least R30.23 per hour — including to domestic workers and farm workers, who are among those set to benefit from the increase.

“The 1st of March 2026 is the date on which this amendment shall become binding. The R1.44 upward adjustment will benefit all workers, including vulnerable farm workers and domestic workers,” the Minister said.

Excluded from the NMW increase were workers employed on an expanded public works programme (EPWP). 

This was because EPWP workers were employed under a special dispensation, their adjustment rose from R15,16 per hour to a minimum wage of R16,62 per hour.

In addition, workers who had concluded learnership agreements contemplated in section 17 of the Skills Development Act, 1998 (Act No. 97 of 1998), were entitled to the allowances contained in Schedule 2. The rates for learnerships were to be published on the departmental website.

The NMW is South Africa’s legal minimum pay requirement. It came into effect in 2019 under the National Minimum Wage Act and is reviewed every year. In terms of the law, employers are obligated to pay workers at least the prescribed minimum rate per hour.

The wage is enforced by the Department of Employment and Labour, with disputes handled through the Commission for Conciliation, Mediation and Arbitration (CCMA). Employers who do not comply with the Act may face fines imposed by labour inspectors.

According to a statement sent by the Department of Employent and Labour, the NMW applies to all workers and their employers, with a few exceptions. It does not apply to members of the South African National Defence Force, the National Intelligence Agency and the South African Secret Service. It also does not apply to volunteers who perform work without receiving, or being entitled to receive, payment.

Importantly, the National Minimum Wage does not include allowances such as transport, tools, food or accommodation, nor does it include payments in kind (such as board or lodging), tips, bonuses or gifts, the statement explained.

Updated sectoral determinations, including rates for the contract cleaning, wholesale and retail sectors, as well as learnership allowances, are available on the Department of Employment and Labour’s website (www.labour.gov.za)

This information was supplied by the Department of Employment and Labour.