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National Minimum Wage 2022

DearSA-National-Minumum-Wage
Dear South Africa

170 comments delivered, so far (closes 14 January 2022)

The National Minimum Wage Commission has published the National Minimum Wage Commission proposal for 2022 adjustment, and is asking you to comment.

    • The majority of commissioners recommended that the national minimum wage be increased by 1% above inflation as measured by the consumer price index (CPI).
    • A minority recommended that the national minimum wage be increased by 1.5% above inflation as measured by the CPI.
    • All commissioners also recommended that the minimum wage for domestic workers be equalised to the national minimum wage in 2022, in line with a decision taken in 2021.
    • The review report to the Minister must reflect any alternative views, including those of the public, in respect of any recommendations made in terms of subsection (1).

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    Dear South Africa

    SUMMARY

    After considering the current economic state of the country and the impact of the COVID-19 pandemic on both employers and employees, the majority of Commissioners propose that the national minimum wage increases by the rate of inflation plus 1%. The inflation rate (measured by CPI) as of October 2021 was 5%, so the adjustment should be about 6%. The actual amount, however, will depend on the inflation in the month in which the adjustment takes effect.

    In 2019, the Commission was newly established and therefore unable to undertake a full annual review. It was previously recommended that the national minimum wage increase at the rate of inflation for the poorest decile of households in the year to March 2020, or 3,8%.

    The national minimum wage therefore increased from R20.00 to R20.76 an hour from March 2020. In 2021, the national minimum wage national minimum wage again increased by 1,5% above headline inflation, to R21.69.

    This translated to an increase of 4,5% in the national minimum wage. The process of raising the minimum wage for farm and domestic workers also led to an increase of 16,1% in the minimum for farmworkers and 22,6% for domestic workers.

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