The National Minimum Wage in South Africa will increase with effect from 1 March 2026, following the annual adjustment published by the Minister of Employment and Labour in terms of the National Minimum Wage Act. Employers are required to ensure that all affected employees are remunerated at or above the prescribed minimum rate from this date.

As from 1 March 2026, the National Minimum Wage will be increased from R28.79 to R30.23 per ordinary hour worked. This hourly rate translates to:

• a minimum weekly wage of R1,360.35 for employees working a standard 45-hour workweek, and
• a minimum monthly wage of R5,890.31, based on 194.85 working hours per month.

Employers should note that payment below the national minimum wage is unlawful and may expose the business to enforcement action and penalties.

Who does this new rate apply to?

The increase applies broadly across most sectors and includes domestic workers and farm workers.

However, minimum wages in certain specified sectors differ from the National Minimum Wage. By way of example:

• Employees engaged under the Expanded Public Works Programme (EPWP) are subject to a lower minimum hourly rate, as determined under specific statutory provisions applicable to that programme.
• Employers operating in Sectoral Determination 9: Wholesale and Retail Sector are required to increase their minimum wage rates in accordance with the applicable job categories, with the lowest category aligned to the national minimum wage of R30.23 per hour.
• Similarly, Employers covered by Sectoral Determination 1: Contract Cleaning Sector must adjust their minimum rates, which increase to R33.27 per hour in metropolitan areas and R30.33 per hour in certain rural areas.

Employers are advised to consult the latest Government Gazette and official departmental guidance to confirm the applicable rates for their sector and area of operation.

Are part-time, casual or contract workers affected?

Yes. The National Minimum Wage baseline applies to employees who are paid by the hour, regardless of full-time or part-time status. Employers using casual or contract labour must ensure that pay rates meet or exceed the new National Minimum Wage for ordinary hours worked.

Impact on overtime pay

Overtime remuneration is generally calculated as a multiple of the employee’s ordinary hourly rate. Since the minimum wage increases the baseline hourly rate, the monetary value of overtime hours (for example, at 1.5 times the ordinary rate) will also rise accordingly, where the ordinary rate is at the minimum. Employers should review overtime policies to ensure compliance.

Allowances and other payments

Employers are reminded that the National Minimum Wage excludes allowances paid to enable employees to perform their work, such as transport, tools, or equipment allowances. It also excludes payments in kind, including board or accommodation, as well as bonuses, tips, or food. These payments may not be used to make up or offset the prescribed national minimum wage.

Impact on Learnership allowances

Learnerships often have prescribed allowances that differ from the standard minimum wage and are linked to the qualifications and stage of the training. With the new minimum wage, Employers and training providers should review these allowances because they may affect cost structures under learnership agreements. Updated learnership allowance schedules are usually published alongside the Gazette notice.

What should employers do now?

Employers should:

• Update payroll systems to reflect the new National Minimum Wage rate as of 1 March 2026;
• Verify overtime and allowance calculations to ensure legal compliance;
• Communicate changes to staff affected by the adjustment; and
• Review any learnership, EPWP or sector-specific rates that might differ from the standard National Minimum Wage.

Written by Suzaan de Stadler (HR/Labour Consultant – FvT HR Consulting)