2025 National Minimum Wage Increase
The national minimum wage in South Africa is set to increase from R27.58 to R28.79 per hour. This adjustment reflects a 4.4% increase, which is part of the ongoing efforts to address economic challenges and improve living standards for workers in the country.
The new rate will take effect on March 1, 2025. The National Minimum Wage (NMW) Commission had recommended an adjustment based on the Consumer Price Index (CPI) plus an additional 1.5%, which was influenced by the CPI of 2.9% recorded in November 2024.
The annual review of the national minimum wage is influenced by several key factors, as mandated by the National Minimum Wage Act. The primary considerations include:
- Inflation and Cost of Living
- Wage Levels and Collective Bargaining Outcomes
- Gross Domestic Product (GDP)
- Productivity
- Employer Viability
- Impact on Employment
- Public Input
This increase aims to ensure that workers receive fair compensation in line with inflation and rising living costs, while also considering the sustainability of businesses across various sectors.
Please view the attachment below for more information:
https://www.lnr.co.za/wp-content/uploads/2025/02/Minimum-Wage-2025.pdf
