In a move aimed at improving the livelihoods of South Africa’s working population, the Department of Employment and Labour has officially increased the National Minimum Wage (NMW) for 2025. The new rates came into effect on March 1, 2025, marking an important shift in the country’s labor landscape.
This increase aligns with government efforts to ensure that workers are fairly compensated, especially amid rising inflation and economic uncertainty. Here’s everything you need to know about the latest wage adjustment, what it means for employers and employees, and how it affects different sectors.
What Is the New Minimum Wage for 2025?
The minimum wage has been raised from R27.58 to R28.79 per ordinary hour worked, reflecting an approximate 4.38% increase. While this is slightly below the recommended adjustment (which had proposed CPI plus 1.5%), it represents a meaningful step forward for millions of South African workers struggling to keep up with the cost of living.
The new rate applies to all employees, regardless of the number of hours they work, and cannot be overridden by a contract or collective agreement. This is a legal requirement, and all employers must comply accordingly.
Sector-Specific Wage Rates
Although the new minimum wage applies broadly, certain sectors continue to have their own specific minimums. For instance, Expanded Public Works Programme (EPWP) workers will now earn R15.83 per hour, up from R15.16. This reflects a smaller increase than the national average, but still represents a modest improvement for workers in this field.
In the contract cleaning sector, wages vary based on location. For example, workers in major metropolitan areas like Cape Town, Johannesburg, and Pretoria will earn R31.69 per hour, while those in most other regions will receive R28.89 per hour. In KwaZulu-Natal, wages are determined by regional bargaining council agreements and may differ slightly.
Who Is Affected – and Who Isn’t?
The National Minimum Wage applies to all workers in South Africa, with a few exceptions. It does not apply to members of the South African National Defence Force, the National Intelligence Agency, or the South African Secret Service. Additionally, unpaid volunteers and interns who do not receive remuneration for their services are excluded from the wage requirement.
It’s also worth noting that the minimum wage excludes other benefits such as transport allowances, meals, accommodation, or tips. These cannot be counted toward meeting the minimum wage.
What Does This Mean for Employers?
Employers have a legal obligation to pay their workers according to the new wage structure. Non-compliance may result in fines or other penalties. The Department of Employment and Labour is expected to increase its inspector workforce significantly—from 2,000 to 20,000—to enhance enforcement.
Businesses are advised to review their payroll systems immediately and ensure all employees are being compensated in line with the updated rates. Any attempt to reduce hours or alter working conditions to avoid compliance will be considered an unfair labor practice under South African law.
Why This Increase Matters
South Africa continues to grapple with deep social and economic inequality, and the minimum wage remains a critical tool in the fight against poverty. Minister of Employment and Labour, Nomakhosazana Meth, reaffirmed the government’s commitment to social protection, calling the wage increase “a necessary intervention to shield the most vulnerable workers.”
This latest adjustment also reflects ongoing efforts to strike a balance between economic growth and fair labor standards. While businesses are facing cost pressures, the government has emphasized that protecting workers’ rights and dignity remains a top priority.
Final Thoughts
The increase in South Africa’s National Minimum Wage is more than a financial adjustment—it’s a statement of the country’s values. As living costs continue to rise, this policy is designed to help working families stay afloat and encourage equitable economic participation.
Whether you’re an employer preparing your HR team or a worker curious about your new pay, staying informed about these changes is crucial. The 2025 minimum wage update is a significant step toward a more just and inclusive economy.