Skip to main content

These are the penalties for not paying a minimum wage in South Africa

| Economic factors

Penalties are in place to deal with employers who contravene the National Minimum Wage (NMW) once it is implemented, Department of Labour Director: Employment Standards, Stephen Rathai, said.

These would include, said Rathai, compelling non-compliant employers to pay the worker twice the amount that is owed for non-payment. He stressed that the penalties are being considered to serve as a deterrent to non-compliant employers.

The briefing sessions, which are being held around the country, are aimed at engaging trade unions and other stakeholders on the NMW and amendments to the Basic Conditions of Employment Act and Labour Relations Act.

Rathai also revealed that once the NMW is implemented, labour inspectors will be able to refer non-compliance with the NMW to the Commission for Conciliation, Mediation and Arbitration (CCMA) for an arbitration award.

Rathai told stakeholders that when The NMW is law, a NMW Commission would be established to review the NMW and make recommendations annually on its adjustment. The Commission, he said, would also investigate the impact of the NMW on the economy, collective bargaining and income differential, amongst others.

“The National Minimum Wage Commission will also make recommendations on adjusting the NMW based on inflation, cost of living, wage levels, productivity, and wage differentials,” said Rathai.

He also explained that employers could also apply for exemptions however; these would be considered on the merits of each application and if granted.

“The National Minimum Wage will be the floor level below which no employee should be paid. The level will be at R20 per hour. It will be the amount payable for the ordinary hours of work and the worker is entitled to receive the minimum wage for the number of hours worked in a day,” said Rathai.

He said the NMW for domestic workers will be 75% of the NMW while NMW for farm workers will be 90% of the NMW.

The trade unions and stakeholders were encouraged to submit any inputs to the Department.

Pin It

Related Articles

By: Hanno Labuschagne - MyBroadband An anticipated strengthening of the rand and slipping global oil prices could result in lower petrol prices at the pumps next month.
By: Myles Illidge - MyBroadband Eskom has asked the National Energy Regulator of South Africa (Nersa) for a 36.15% electricity tariff hike for the customers it directly supplies and charges, Daily Maverick reports.
By: Yogashen Pillay – The Mercury Economists are predicting a big drop in petrol and diesel prices next month, saying it will bring much-needed relief to under-pressure consumers.
By: Jason Woosey - IOL Petrol and diesel prices are set to come down from Wednesday, June 5, according to a statement released by the Department of Mineral Resources and Energy (DMRE).
By: Opinion – IOL Business Report South Africans have been collectively waiting with bated breath for some small financial reprieve from the relentless price hikes of the past few years that have driven them to the brink of despair, chief among t...