4 December, 2019
Developments Regarding National Minimum Wage for 2020
Following a discussion with Ms Jahni de Villiers, Agri SA's
Head: HR, Labour & Development and a member of the NWM
Comassion, we can report the following.
NWM Commission was meant to have met on 21 November 2019 to
agree upon a recommendation to the Minister of Labour
regarding the NMW applicable for 2020. Unfortunately the
meeting was not quorate and thus had to be cancelled. In
all likelihood, the next meeting of the NMW Commission will
only occur in January 2020 and only thereafter a
recommendation will be sent to the Minister. This, together
with the fact that (a) a 30 day notice period has to be
given to employers of what the new NMW will be and (b) the
Minister cannot determine the new wage until a
recommendation thereon has been received from the NMW
Commission, a new NMW will only be implemented on 1 March at
of importance to note are the following points:
In terms of the
current legislation, the NMW can be applied
retrospectively and that this is likely to happen in this
be backdated to 1 January 2020).
There has been
no indication thus far that the current differential
between the farm (and forestry) workers' minimum wage of
R18.00 per hour and the standard rate of R20.00 will be
narrowed at this point.
Although not a
guarantee, it is probable that the NMW will only be
increased by the CPI (latest one is 3.7%).
RECOMMENDATION TO MEMBERS
the above, it is recommended that those members who are not
in financial distress, implement a 3.7% wage increase on 1
January 2020 in anticipation of this likely increase being
backdated to 1 January 2020. This increase should be
applied to R18.00 per hour (i.e. to R18.67 per hour).
members who are in financial distress should apply for an
exemption through the normal channels.
Forestry South Africa