New minimum wage announced

March 1, 2022

The minister of employment and labour, Mr Thulas Nxesi, announced on 7 February 2022 that effective 1 March 2022, the national minimum wage will be increased to R23,19 for each ordinary hour worked, a 6.9% increase from the current minimum wage of R21,69. This includes farmworkers and domestic workers.

Schedules have been provided by the Government Gazette for three categories of workers, one of which has a direct impact on Pple Hospitality and Pple Healthcare, our clients and staff, which is:

• The sectoral determination for the contract cleaning sector is included in the amendment to the National Minimum Wage Act, with minimum hourly rates for contract cleaning employees set for three different areas of the country as follows:
- Metropolitan councils (Area A) R25,52 per hour
- All areas of KwaZulu-Natal (Area B) Rates as per the Bargaining Council for the Contract Cleaning Service Industry (BCCCI)
- Rest of SA (Area C) R23,27 per hour

The other two categories are:

• Workers employed on an expanded public works programme will be entitled to a minimum wage of R12,75 per hour. Learnership allowances have been adjusted according to the NQF level learners are on and credits already earned.
• The rates for the wholesale and retail sector have been amended, and are determined by job category and number of hours worked.

All Pple Group clients who have staff on the previous minimum wage hourly rate of R21,69 will be required to increase this to R23,19 as of 1 March 2022. This also impacts those staff earning rates above the minimum wage, which are also likely to need to be increased to align with the overall upward shift.

Each of our clients will be contacted individually to alert them to the impending changes, and new rates schedules will be shared and approved. Staff will similarly be contacted and sent a letter letting them know of the wage increase, as well as the increase in UIF deductions, which is calculated at a total of 2% of remuneration, 1% each paid by employer and employee.

Chantel Bellora, director of operations for Hospitality and Healthcare, says, “We know how important staying up to date with the latest legislation is for ourselves and our clients, and we will ensure that all our staff affected by the increase in the National Minimum Wage are remunerated accordingly. We are willing and available to advise our clients on how best to manage this transition seamlessly and will answer any additional queries you may have.”