By Ragheema Mclean
The Department of Employment and Labour has called for public input on proposed changes to South Africa’s National Minimum Wage (NMW) for 2025. The notice, recently gazetted, invites all interested parties to submit their views by 30 September 2024.
Last year, the commission raised the NMW by 9.62% for 2024, setting the current rate at R25.42 per hour, up from R23.19.
Speaking on VOC Breakfast, National Minimum Wage Commission Chairperson Professor Imraan Valodia said that public participation is a key factor in the process.
“Part of the job that we have to do in the commission is to make recommendations to the minister on the increases to the minimum wage, which will take effect in March 2025,” Valodia said.
“What the legislature requires is a public participation process. We are seeking the views of the public—whether it be employers, workers, NGOs, or anyone who has something to say about the minimum wage.”
Valodia highlighted several key factors that the Commission considers when making its annual adjustments to the NMW, including:
- Inflation
- The cost of living and the need to retain the value of the minimum wage
- Wage levels and collective bargaining outcomes
- The state of the economy
- Gross Domestic Product (GDP)
- The ability of employers to maintain business operations successfully
- The operation of small, medium, or micro-enterprises and new enterprises
- The impact on employment or job creation
“We want to have a minimum wage that means something and that has a positive impact on the earnings of the lowest earners in our society. But we also have to recognize that if we set the levels too high, it could affect employment levels. So, we consider all the information that would impact those two questions and try to reach a balanced view,” he added.
The public is urged to submit their representations to the Directorate: Employment Standards at the Department of Employment and Labour, Private Bag X117, Pretoria, 0001, or via email at nmwreview@labour.gov.za by the deadline of 30 September 2024.
Listen to the full interview below:
VOC News
Photo: Pexels
