National Minimum Wage Increase

Our blog post today covers the recently Gazetted national minimum wage increases, due to come into force on 1 March 2021. The changes bring an increase in the minimum wage for both the sector-specific wages and the national minimum wage.

The minimum wages from 1 March will be as follows:

Please note also that the minimum wage for Learners has been increased by 4.5% across all NQF levels.

The minimum wages for farm and domestic workers have significantly increased in comparison to last year (see 2020’s blog post), reflecting the Government’s aim to equalise all minimum wages over time.

Should any of your employees be on or near the current minimum wage, you should increase their hourly rate to at least meet the above amounts from next month. This is particularly important if you are benefiting from ETI for those employees, as this is a requirement to qualify for the incentive and the penalties for breaching the rules are severe.

As you know, we like to make your payroll a breeze. If you want to quickly check all your employees’ wages in one go, simply navigate to:

• Employees > Bulk Actions > Regular Inputs (under Payroll Inputs)
• From the dropdown boxes, select “Basic Salary” and either “Hourly Paid” or “Salaried”
• Your employees and their hourly rate / salaries will be listed for you to review and amend as you deem necessary.

We hope that this information has proved useful to you. If you have any questions for us, you can contact us at info@simplepay.co.za. 

Equally, if you are not yet a client of SimplePay but would like to be, why not check out our website? Or, better yet, try out our service for free with our 30-day trial, get acquainted with our user-friendly service by reading our getting started page, or take our free online course. 

Keep well and stay safe.

Team SimplePay