NATIONAL MINIMUM WAGE INCREASE PROPOSED FOR 2021

The National Minimum Wage Commission has invited written comments on its proposed increase.

The proposed increase of 1.5% above inflation was published in its annual review of the national minimum wage. The increase is applicable to domestic workers and other employees.

The Commission’s purpose is to review the national minimum wage on an annual basis. It’s required to accept comments from relevant stakeholders and the public.

One of the proposals for 2021 is that farmworker wages be brought in line with the national minimum wage.

Business Tech reports that the majority of commissioners proposed that the national minimum wage be increased by the rate of inflation plus 1.5%. The inflation rate, measures by CPI, as of September 2020 was 3% so the adjustment should be on the order of 4.5%, the Commission said.

In March 2020, the national minimum wage was increased from R20.00 to R20.76. If the 4.5% increase is approved, the national minimum wage will increase by another 90 cents to a total of R21.69.

The Commission further recommends that the national minimum wage for domestic workers should also be increased. The proposed increase in 2021 is 88% while the proposed increase in 2022 is 100%.

Those that are interested in submitting written comments have 30 days to do so.

Image credit: Business Tech