As of March 2025, South Africa has introduced updated national minimum wage rates. The changes apply across multiple sectors and regions, with the goal of aligning wages more closely with inflation, cost of living, and broader economic conditions.
South Africa Updates its 2025 National Minimum Wage
The new national minimum wage in South Africa is now ZAR 28.79 per hour, effective 1 March 2025. This is equivalent to USD 1.52.
This wage applies to all employees, unless specific sectoral determinations state otherwise.
Sector-Specific Minimum Wages
Certain South African employee categories have distinct minimum wage rates:
Farm workers: ZAR 28.79/hour
Domestic workers: ZAR 28.79/hour
Extended Public Works Programme workers: ZAR 15.83/hour
In addition, sector-specific wages in South Africa vary depending on location and job category. For contract cleaning employees, the hourly wage is ZAR 31.69 in Metropolitan and Local Councils and KwaZulu-Natal, and ZAR 28.89 in all other areas.
In the wholesale and retail sector, employees earn between ZAR 28.79 and ZAR 76.97 per hour in Metropolitan and Local Councils, depending on their job role, while in other regions, the range is between ZAR 28.79 and ZAR 66.76 per hour.
Who Sets the Wage in South Africa
The National Minimum Wage Commission is responsible for setting the minimum wage in South Africa, with annual reviews based on multiple factors:
Inflation and cost of living
Collective bargaining outcomes and wage levels
National productivity and GDP
The sustainability of businesses, including SMEs and start-ups
Impact on employment and job creation
Recommendations made by the Commission are submitted to the Minister and are implemented by a date set by the President.
Wage Payment Requirements
Employers have flexibility in determining how frequently wages are paid—daily, weekly, fortnightly, or monthly. However, payment must be made within 7 days of the end of the payment cycle. Wages can be paid via cash, cheque, or direct bank deposit.
Compliance Considerations
South African employers should review their payroll systems and employment contracts to ensure compliance with the new wage laws. In addition to updating wage structures, businesses should be prepared for potential inspections or audits and ensure timely payment in accordance with the prescribed rules.
Implications for Employers in South Africa
The 2025 minimum wage update places increased responsibility on employers to ensure full compliance across all employee categories and regions. Businesses must review and adjust wage structures, especially in sectors with varying rates like retail, cleaning, and public works. Failure to meet the updated requirements could result in legal and financial penalties.
Employers should also reassess payroll systems to accommodate region-specific rates and ensure timely wage payments within the mandated 7-day window. For SMEs and companies operating in multiple provinces, maintaining compliance will require careful planning, accurate recordkeeping, and a clear understanding of the sector-specific wage landscape.
