The National Minimum Wage Commission has recommended an above-inflation increase for minimum wages next year.

This is one of three proposals the Commission has on its table, as it issues another invitation to interested parties to submit written representations.

It comes amid the rising the cost of living and the struggling economy, while also taking into account the ability of employers to carry on their businesses successfully, and new job creation.

The three proposals tabled are as follows:

• The recommendation by the majority of Commissioners is Consumer Price Index (CPI) plus 3%. Eight of the 12 commissioners propose that the national minimum wage increase by CPI plus 3%.
• The recommendation by the Business Constituency is an increase linked to CPI.
• A recommendation by an independent expert is CPI plus 0.75%.

The CPI is a measure of the change in prices as paid by consumers for goods and services over time. In South Africa, the latest consumer price inflation as published by Statistics South Africa was 5,9% in October 2023, up from 5,4% in September 2023.

In 2021, the Commission recommended increasing the national minimum wage from R20,76 to R21,69 per hour. The 2022 national minimum wage was revised from R21,69 to R23,19 per hour. In 2023, it was revised to R25.42 per hour.

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The public has until 8 January 2024 to make written representations to the directorate either via post or email:

• Employment Standards, Department of Employment and Labour, Private Bag X117, Pretoria, 0001
• Email: nmwreview@labour.gov.za

The Employment and Labour Minister will announce the new National Minimum Wage in February 2024, which will come into operation from 1 March 2024.