National Minimum Wage under the spotlight

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06 Jan 2022

The majority of National Minimum Wage Commissioners recommend that the national minimum wage (NMW) should be increased by 1% above inflation as measured by the consumer price index (CPI).

The employment and labour department published the NMW Commission’s Report and Recommendations on the annual review of the NMW in Government Gazette 45649 for comment.

The Commission also points out that, on the other hand, a minority of Commissioners recommend that the NMW should be increased by 1,5% above inflation as measured by CPI.

All Commissioners recommend that the minimum for domestic workers be equalised to the NMW in 2022, in line with the decision taken in 2021.

The NMW Act of 2018 compels the NMW Commission to annually review rates and make recommendations to the employment and labour minister on any adjustment to the NMW.

In an earlier statement, the department indicated that the NMW Commission, in considering possible changes to the NMW, takes into account factors such as “inflation, the cost of living, and the need to retain the value of the minimum wage; gross domestic product; wage levels and collective bargaining outcomes; productivity; ability of employers to carry on their businesses successfully; the operation of small, medium or micro-enterprises and new enterprises; likely impact of the recommendation adjustment on employment or the creation of employment”.

Comment is invited until 14 January 2022.

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(This article is provided for informational purposes only and not for the purpose of providing legal advice. For more information on the topic, please contact the author/s or the relevant provider.)
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