National Minimum Wage – Effective 1 March 2026 ǀ What Employers Must Do Now

The Minister of Employment and Labour has published an amendment to the National Minimum Wage in terms of the National Minimum Wage Act, 2018 (Act 9 of 2018). With effect from 1 March 2026, the National Minimum Wage increases to:

R30.23 per ordinary hour worked.

This rate applies to all workers who fall within the scope of the Act, including:

Workers employed under the Expanded Public Works Programme (EPWP) are entitled to a separate prescribed minimum of R16.62 per hour from the same date. Employers must ensure compliance from 1 March 2026.

What This Means for Employers

The increase is not merely an adjustment to an hourly rate. It carries practical payroll and compliance implications.

1. Payroll Adjustments

From 1 March 2026, no employee may be paid less than R30.23 per ordinary hour worked. Employers should:

2. Overtime, Sunday and Public Holiday Pay

Overtime and public holiday pay are calculated as a multiple of an employee’s ordinary wage in terms of the Basic Conditions of Employment Act. Where the base hourly rate increases, all related calculations must reflect the new minimum. Failure to adjust these calculations is a common compliance risk.

3. Monthly or “All-Inclusive” Salaries

Where employees are paid a fixed monthly amount, employers must ensure that when converted to an hourly rate, the salary equals or exceeds R30.23 per ordinary hour. In calculating compliance, the National Minimum Wage excludes certain payments, including:

Employers should carefully review wage structures to ensure that the effective hourly rate remains compliant after lawful deductions.

Learnerships and Sectoral Rates

Learnership allowances and certain sector-specific determinations may have prescribed rates as set out in the Gazette. Employers operating in regulated sectors should confirm the applicable rate for their category of workers.

Where Employers Commonly Get Caught Out

Practical experience shows that compliance failures often arise from:

Not adjusting part-time employee rates.
Incorrectly converting monthly salaries to hourly equivalents.
Overlooking domestic workers.
Failing to recalculate overtime, Sunday and public holiday pay.
Delayed payroll updates after the effective date.

Labour inspectors are entitled to request proof of compliance. Non-compliance may result in:

Immediate Action Checklist

Before processing March payroll, confirm:

All affected employees earn at least R30.23 per ordinary hour.
Overtime and public holiday rates have been recalculated.
Monthly salaries convert correctly to compliant hourly rates.
Domestic employment arrangements meet statutory requirements.
Payroll records reflect updated rates from 1 March 2026.

Final Note

The National Minimum Wage is reviewed annually in terms of the National Minimum Wage Act. Employers should incorporate annual minimum wage verification into their payroll governance processes. Proactive compliance is significantly less costly than corrective enforcement.

Source:

- Government Gazette No. 54075 (Notice R.7083), published 3 February 2026 — National Minimum Wage Act: National Minimum Wage Amendment, 2026, effective 1 March 2026, setting the National Minimum Wage at R30.23 per ordinary hour worked and the EPWP minimum at R16.62 per hour.