On 1 March 2026, South Africa’s National Minimum Wage is officially going up.
While it might look like a simple payroll adjustment, getting it wrong isn’t just a concern – it’s a compliance concern.
SMME owners, and HR managers and payroll teams, especially those in labour-intensive sectors, are advised to treat the new minimum wage requirements as a statutory obligation under the National Minimum Wage Act 9 of 2018.
Employers that fail to implement the updated wage rates, or that do so incorrectly, may commit an unfair labour practice and may face disputes, operational disruptions or escalation to the Department of Employment and Labour.
To help ensure compliance, Clientèle Legal breaks down the top five requirements:
Classify your employees correctly
Not every employee is covered by the same rate, and this is where many businesses make mistakes.
- The Standard Rate: From 1 March, the minimum wage for General, Farm, and Domestic workers jumps to R30.23 per hour.
- Employees in the Expanded Public Works Programme (EPWP) move to R16.62 per hour.
- Learners on registered learnerships must be paid allowances in line with the Act, linked to NQF levels. Learnership agreements must also comply with section 17 of the Skills Development Act 97 of 1998.
Remember that the law overrides the contract
Many policyholders believe that if an employee signed a contract for R28/hour last year, that’s the deal. Wrong. The law effectively overwrites your private contracts.
On 2 March, the old rate becomes illegal. If you pay below the new minimum, an employee will have legal recourse in terms of Labour Law, even if the employee agreed to the lower rate in writing.
Check your sector’s rules
Certain sectors have extra rules on top of the general minimum wage. These include contract cleaning, as well as wholesale and retail.
For example, in the cleaning sector, Section 200B of the Labour Relations Act 66 of 1995 can hold employers responsible if pricing makes compliance impossible. Oversight along the supply chain is also increasing, so small businesses cannot assume that they are automatically shielded from scrutiny.
Can’t Afford It? Let’s Look at the Exemption Process
If the new rate threatens to close your business doors, you can apply for an exemption through the National Minimum Wage Exemption System.
Please note that this is not a “get out of jail free” card. You have to provide full financial disclosure, and exemptions only last one year.
Paying less before approval is a breach of the law.
The Real Cost of Non-Compliance
Think the Department of Employment and Labour is too busy to check? Think again. Non-compliance leads to:
- Enforcement Orders: Directives to pay back-pay immediately.
- CCMA Disputes: Costly, time-consuming, and stressful.
- Reputational Damage: Hard to hire good talent when you’re flagged for unfair labour practices.
“For small businesses operating on tight margins, and labour-intensive operations, a proactive compliance check now can protect your business from avoidable legal exposure later,” says a Clientèle legal representative. “Partnering with a legal expert can help to prevent missteps that could have financial, operational, and reputational consequences.”
Clientèle Legal also advises employees to check their payslips and consult with a legal professional if they are not being paid in accordance with the Act.