South Africa’s national minimum wage will increase to R30.23 per hour on March 1, 2026, a five percent rise from the current R28.79, Minister of Employment and Labour Nomakhosazana Meth announced on February 3rd.
The R1.44 increase, calculated using the Consumer Price Index plus an additional 1.5 percent as recommended by the National Minimum Wage Commission, aims to benefit vulnerable workers including those in the agricultural and domestic sectors, according to the Minister’s statement. The National Minimum Wage Act, which came into effect in 2019, mandates employers to adhere to the minimum hourly rate, with enforcement carried out by the Department of Employment and Labour and the Commission for Conciliation, Mediation and Arbitration (CCMA).
The announcement has sparked immediate debate, with labour groups arguing the new rate remains insufficient to meet basic living costs. The General Industries Workers Union of SA (GIWUSA) estimates workers still face a monthly shortfall of approximately R2,000, and is advocating for a minimum monthly salary of R15,000.
Business groups have expressed concerns about the potential impact on employment. Employers caution that the increased wage floor could discourage hiring, particularly for young and low-skilled workers. Gerhard Papenfus of the National Employers’ Association of SA described the policy as a potential “barrier to work,” urging the government to prioritize policies that stimulate investment and job creation.
Agricultural stakeholders also voiced apprehension. AgriSA warned that wage increases exceeding inflation could threaten the viability of farms, particularly given rising input costs and ongoing challenges with livestock diseases.
Workers employed under the Expanded Public Works Programme (EPWP) will be excluded from the standard NMW increase. Their wages will instead rise from R15.16 to R16.62 per hour, reflecting a separate dispensation for those employed under the program. Learnership agreements, governed by the Skills Development Act, will also be subject to different allowances, with rates to be published on the departmental website.
The National Minimum Wage is legally binding and cannot be altered by contract, collective agreement, or other legislation. Employers found in violation of the Act are subject to fines enforced by the Department of Employment and Labour and the CCMA.
As of February 22, 2026, the Department of Employment and Labour has not responded to requests for comment on potential mitigation strategies for businesses concerned about the impact of the wage increase.
