EOHCB: National Minimum Wage Update

The new national minimum wage of South Africa has now been implemented, effective from 1 January 2019, and the EOHCB has published information on this below.

No employee may be remunerated on a commission structure only. A basic salary must be guaranteed and reflect on the payslip. The minimum hourly rate is R20.00.

Wages must be calculated on an hourly rate or reflect as R3500.00 for a 40 hour week or R3900.00 for a 45 hour week.

Commission, travel, accommodation and/or food allowance is not part of the prescribed minimum wage.

An employer who is not compliant and does not remunerate an employee according to the new minimum wage will be penalised and fined a minimum of R7,800.00 plus interest, which is payable to the employee. This is enforced through the CCMA and not the National Bargaining Council for Hairdressing, Cosmetology, Skincare and Beauty.

Schedule 2 of the Skills Development Act relating to monthly salaries paid to learners/apprentices is only applicable when an employer and employee has entered into a learnership/apprenticeship agreement through Services Seta and the establishment/workplace has been approved and accredited.

Current weekly allowances paid to learners are based on a weekly rate and not hourly rate.

Individual employers may apply for exemptions directly to the Department of Labour. This is an online application, which will instantly inform an employer whether an exemption is granted, declined or needs to be audited.

Please feel free to contact the EOHCB on info@eohcb.com for more information.