The National Minimum Wage (NMW) is the legal floor below which no employer in South Africa may pay a worker. Introduced on 1 January 2019, the NMW is reviewed annually by the National Minimum Wage Commission and adjusted to keep pace with inflation and the cost of living. For employers, understanding the NMW is not optional — it is a legal obligation, and non-compliance carries serious consequences.
Current National Minimum Wage Rate (2026)
As of 1 March 2024, the standard National Minimum Wage is R27.58 per hour. This rate applies to the majority of workers in South Africa, including full-time, part-time, and casual employees. The NMW Commission reviews the rate annually, typically announcing adjustments that take effect on 1 March each year. Employers should check the Department of Employment and Labour website for any subsequent updates.
Key figure: The standard NMW is R27.58 per hour. For a worker on a standard 45-hour week, this translates to approximately R5,379.30 per month (R27.58 x 45 hours x 52 weeks / 12 months = R5,379.30).
The NMW has risen steadily since its introduction at R20.00/hour in 2019. Here is a summary of the rate history:
| Effective Date | NMW Rate (per hour) | Approximate Monthly (45 hrs/wk) |
|---|---|---|
| 1 January 2019 | R20.00 | R3,900.00 |
| 1 March 2020 | R20.76 | R4,048.20 |
| 1 March 2021 | R21.69 | R4,229.55 |
| 1 March 2022 | R23.19 | R4,522.05 |
| 1 March 2023 | R25.42 | R4,956.90 |
| 1 March 2024 | R27.58 | R5,379.30 |
Who Does the NMW Apply To?
The National Minimum Wage Act (No. 9 of 2018) applies to all workers in South Africa, with very limited exceptions. This includes:
- Full-time employees
- Part-time employees
- Casual and temporary workers
- Domestic workers
- Farm workers
- Workers employed through temporary employment services (labour brokers)
The Act defines a "worker" broadly — essentially anyone who works for another person and receives, or is entitled to receive, remuneration. Independent contractors are excluded, but the Labour Relations Act tests of who is an "employee" apply, meaning that a worker labelled as a contractor may still be protected if the relationship is effectively one of employment.
Special Categories and Exemptions
While the NMW applies broadly, certain categories of workers have different rates or arrangements:
Domestic Workers
Domestic workers are fully covered by the NMW at the standard rate of R27.58 per hour. Previously, domestic workers had a separate, lower minimum wage under Sectoral Determination 7. Since 2022, the domestic worker rate has been equalised with the general NMW. Employers of domestic workers must comply with this rate and are also required to register the worker for UIF.
Farm Workers
Farm workers are also covered at the full NMW rate. Prior to the NMW Act, farm workers were governed by Sectoral Determination 13, which set a separate minimum. This distinction no longer applies — all farm workers must be paid at least R27.58 per hour.
Expanded Public Works Programme (EPWP)
Workers employed under the Expanded Public Works Programme (EPWP) are the one exception. EPWP workers receive a minimum of R15.16 per hour (as of March 2024). The EPWP rate is set separately and is lower than the standard NMW because the programme is designed to provide temporary employment and skills development to unemployed individuals.
Workers Who Cannot Claim NMW
The following individuals are excluded from the NMW Act:
- Members of the South African National Defence Force (SANDF)
- Members of the National Intelligence Agency
- Volunteers who receive no remuneration
NMW Exemptions for Employers
Employers who genuinely cannot afford to pay the NMW may apply for an exemption. This is not a blanket opt-out — the process is strict and requires evidence:
- The employer must apply to the Department of Employment and Labour
- The application must include audited financial statements or other proof of financial hardship
- The employer must demonstrate that paying the NMW would result in job losses
- An exemption, if granted, is temporary (typically 12 months) and may allow a rate no lower than 90% of the NMW
- The employer must consult with affected employees or their union before applying
Exemptions are rarely granted and are closely scrutinised. An employer who simply pays below the NMW without an exemption is in breach of the law.
How to Calculate Monthly Pay from the Hourly NMW
Many employment contracts in South Africa specify a monthly salary rather than an hourly rate. To convert the hourly NMW to a monthly figure, you need to know the employee's ordinary hours of work. The Basic Conditions of Employment Act (BCEA) sets maximum ordinary hours at 45 hours per week.
The standard formula is:
Monthly salary = Hourly rate x Weekly hours x 52 weeks / 12 months
| Weekly Hours | Hourly Rate | Monthly Equivalent |
|---|---|---|
| 45 hours (standard) | R27.58 | R5,379.30 |
| 40 hours | R27.58 | R4,781.60 |
| 30 hours (part-time) | R27.58 | R3,586.20 |
| 25 hours (part-time) | R27.58 | R2,988.50 |
| 20 hours (part-time) | R27.58 | R2,390.80 |
Need to run these conversions quickly? Use our hourly rate converter to instantly see how an hourly rate translates to weekly, monthly, and annual figures.
Employer Obligations Under the NMW Act
Employers have several obligations beyond simply paying the correct rate:
1. Pay at Least the NMW
Every worker must receive at least R27.58 per hour for each hour worked. This applies to all forms of remuneration including basic salary, piece-rate work, and commission-based arrangements. If a worker on piece-rate or commission does not earn the equivalent of the NMW for the hours worked, the employer must top up the difference.
2. Display the NMW Notice
Employers must display a copy of the NMW rate at the workplace in a prominent place where workers can read it. The notice must be in an official language that the majority of workers can understand.
3. Keep Accurate Records
The employer must keep records of each employee's hours worked and wages paid for at least three years. These records must be available for inspection by a labour inspector at any time.
4. Provide Compliant Payslips
Under the BCEA, employers must provide a payslip with every payment. The payslip must clearly show the employee's hourly rate, hours worked, gross pay, deductions (PAYE, UIF), and net pay. This is essential for demonstrating NMW compliance. Use our free payslip generator to create BCEA-compliant payslips in minutes.
5. Do Not Make Prohibited Deductions
An employer may not reduce hours or make deductions that effectively bring the employee's rate below the NMW. Deductions for accommodation, meals, or transport may only be made if they comply with the BCEA and do not reduce the cash component below the minimum.
Penalties for Non-Compliance
The NMW Act provides for serious penalties for employers who fail to comply:
- First offence: A fine of the greater of twice the employee's monthly wage or twice the amount that should have been paid
- Subsequent offences: A fine of the greater of three times the employee's monthly wage or three times the amount underpaid
- Labour Court prosecution: Repeat offenders may be referred to the Labour Court for more severe sanctions
- Back pay: The employer must pay the worker the difference between what was paid and what should have been paid, plus interest
Warning: Labour inspectors from the Department of Employment and Labour can conduct unannounced workplace inspections. If they find NMW violations, they will issue a compliance order requiring immediate rectification and payment of arrears.
How the NMW Affects Payslips
When generating payslips, ensure the hourly rate or monthly equivalent meets or exceeds the NMW. Here is an example payslip for a worker on the minimum wage (45-hour week):
| Description | Amount |
|---|---|
| Gross Salary (R27.58/hr x 195 hrs) | R5,378.10 |
| PAYE | R0.00 |
| UIF (Employee 1%) | -R53.78 |
| Net Pay | R5,324.32 |
Note that a worker on the NMW with no other income will typically fall below the PAYE tax threshold, meaning no income tax is deducted. However, UIF is still applicable.
NMW and Overtime
The BCEA requires overtime to be paid at 1.5 times the employee's normal rate. For a worker on the NMW, overtime must be paid at a minimum of:
R27.58 x 1.5 = R41.37 per hour
Work on Sundays must be paid at double the normal rate (R55.16/hr) unless the employee ordinarily works on Sundays. Overtime may not exceed 10 hours per week, and the total working hours (ordinary plus overtime) may not exceed 55 hours per week.
NMW and the Employment Tax Incentive (ETI)
Employers who hire young workers (aged 18-29) and pay them at least the NMW may qualify for the Employment Tax Incentive (ETI). The ETI allows employers to reduce their PAYE payments to SARS. Importantly, an employee must earn at least the NMW for the employer to claim ETI — paying below minimum wage disqualifies the employer from the incentive.
Common NMW Mistakes
The most frequent one is simply missing the annual increase. The rate changes every March, and a payroll left on last year's figure underpays every affected worker until someone notices. Two rate mix-ups follow closely behind: applying the lower EPWP rate to a worker who is not on an EPWP programme, and calculating overtime off the standard rate rather than at least 1.5× the minimum wage.
The rest are about scope. Domestic workers have been fully covered since 2022 and are not exempt. The minimum applies to the gross hourly rate, so deductions cannot take someone below it. And the NMW notice has to be displayed where staff can see it — a small thing, but one labour inspectors do check.
Resources and Further Reading
The National Minimum Wage Act (No. 9 of 2018) is the governing legislation, with the BCEA covering the surrounding rules on hours, overtime and payslips. The Department of Employment and Labour publishes the current rate each year along with the forms for an exemption application.
On this site, the hourly rate converter moves between hourly, weekly, monthly and annual pay, and the PAYE calculator will tell you whether someone on minimum wage owes any tax at all — often they do not.
Staying compliant with the National Minimum Wage is straightforward if you keep your payroll updated and issue proper payslips. Our free payslip generator automatically handles the calculations — enter the salary, and it produces a BCEA-compliant payslip with PAYE and UIF worked out for you.