Share

National Minimum Wage a step towards reducing inequality - Presidency

The National Minimum Wage, which is now law, will create a platform for stakeholders to strive towards reducing inequality.

This is according to a statement issued by the presidency on Monday night - officially confirming that President Cyril Ramaphosa signed into law the National Minimum Wage Bill. The rate of the wage is R20 per hour or R3 500 monthly, depending on the number of hours worked.

In its statement the presidency called the signing of the bill an "historic precedent" as it protects low-earning workers and would provide a platform to reduce inequality in society and will decrease "huge disparities" in income in the national labour market.

"The National Minimum Wage Act will come into force on a date to be determined by the president by proclamation.

"The act sets a floor of R20 per hour for the majority of the country’s workers, which will raise the earnings of an estimated six million South Africans – more than half of the labour force - who earn below this level at present," the statement read.

The National Minimum Wage will be phased in for farm workers, forestry workers, domestic workers, welfare sector and care workers, as they are vulnerable to disemployment, the presidency explained.

"The president’s signing of the new law comes four years, to the month, after the National Economic Development and Labour Council (Nedlac) first began deliberations," the presidency stated. Nedlac engaged on the protection of low-paid workers, fair and effective competition in the labour market, and the challenges of labour instability, caused by violent strikes and the duration of strikes, and wage inequality.

Ramaphosa has also assented to the Basic Conditions of Employment Amendment Bill and Labour Relations Amendment Bill which were negotiated by Nedlac at the same time as the National Minimum Wage.

"The president has also underscored that while national minimum wage will not end income inequality, it provides a firm and unassailable foundation – which is agreed to by all social partners – from which to advance the struggle for a living wage," the presidency concluded.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
19.07
-0.9%
Rand - Pound
24.07
-0.7%
Rand - Euro
20.56
-0.5%
Rand - Aus dollar
12.37
-0.2%
Rand - Yen
0.13
-0.8%
Platinum
899.20
+0.3%
Palladium
999.25
-0.3%
Gold
2,210.66
+0.7%
Silver
24.56
-0.4%
Brent Crude
86.09
-0.2%
Top 40
68,080
+0.6%
All Share
74,278
+0.5%
Resource 10
56,967
+2.4%
Industrial 25
103,572
+0.3%
Financial 15
16,456
-0.4%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders