National Minimum Wage Rises to R28.79 Per Hour Starting March 1, Offering Relief to Low-Income Earners Amid Economic Challenges and Mixed Reactions from Stakeholders
Pretoria, South Africa – March 1, 2025
South Africa’s workforce received a modest but significant lift today as the national minimum wage officially increased by 4.4%, rising from R27.58 to R28.79 per ordinary hour worked. Effective as of March 1, the adjustment—announced last month by Employment and Labour Minister Nomakhosazana Meth—aims to bolster the livelihoods of millions of low-income earners grappling with persistent inflation and a bruising cost-of-living crisis. The move, enacted under the National Minimum Wage Act of 2019, applies across all sectors, including domestic workers, farm laborers, and those in expanded public works programs, though it’s sparked a heated debate over its broader economic impact.
South Africa’s workforce received a modest but significant lift today as the national minimum wage officially increased by 4.4%, rising from R27.58 to R28.79 per ordinary hour worked. Effective as of March 1, the adjustment—announced last month by Employment and Labour Minister Nomakhosazana Meth—aims to bolster the livelihoods of millions of low-income earners grappling with persistent inflation and a bruising cost-of-living crisis. The move, enacted under the National Minimum Wage Act of 2019, applies across all sectors, including domestic workers, farm laborers, and those in expanded public works programs, though it’s sparked a heated debate over its broader economic impact.
The increase, amounting to an extra R1.21 per hour, translates to roughly R230 more per month for a full-time worker clocking 40 hours a week—a small but tangible buffer against rising food, fuel, and electricity costs. For Thandiwe Mokoena, a domestic worker in Johannesburg, the bump offers a glimmer of relief. “Every rand counts when you’re feeding a family,” she said, broom in hand outside a suburban home. “It’s not enough to change everything, but it helps with the basics.” The adjustment slightly outpaces last year’s 4.1% rise, reflecting a cautious nod to December 2024’s inflation rate, which hovered around 5.3%, according to preliminary estimates.
Minister Meth framed the hike as a balancing act, telling reporters in Pretoria, “We’re committed to protecting workers’ dignity while ensuring businesses can still thrive.” The National Minimum Wage Commission, tasked with the annual review, settled on the 4.4% figure after sifting through public submissions in late 2024, rejecting calls from trade unions like SAFTU for a steeper rise pegged at CPI plus 3%. Meanwhile, workers in the Expanded Public Works Programme see their minimum jump from R15.16 to R15.83 per hour, maintaining a special dispensation below the national baseline.
Businesses, however, aren’t universally cheering. Agri SA, representing the agricultural sector, acknowledged the “balanced approach” but warned of tighter margins. CEO Johann Kotzé noted, “Farmers are already squeezed by drought and export costs—this could mean fewer hires.” The sentiment echoes broader concerns from small and medium enterprises (SMEs), with some owners on X lamenting that rising wages, coupled with looming electricity tariff hikes, could force layoffs or closures. One post read, “SMEs are the backbone of jobs, but this feels like a war on us.”
Critics like the Institute of Race Relations (IRR) have gone further, arguing the South Africa minimum wage increase threatens an already fragile job market. The IRR claims nearly 280,000 jobs vanished in 2024 alone, partly blaming past wage hikes, and has called for a 25% cut to spur employment. “Unemployment’s at 32.9%—this isn’t the fix,” said analyst Marius Roodt. Yet, labor advocates counter that the raise is a lifeline in a nation where over 55% live in poverty, per World Bank data. “It’s not enough, but it’s a start,” said Zwelinzima Vavi of SAFTU, pushing for stricter enforcement to ensure compliance.
The timing adds complexity. Just 11 days from now, Finance Minister Enoch Godongwana will table a delayed 2025 budget on March 12, following coalition squabbles over a proposed VAT hike—a plan nixed after public outcry. The rand, shaky after U.S. tariff threats from President Trump, could wobble further if wage-driven cost pressures unsettle markets. For now, workers like Mokoena focus on the immediate: “I’ll take the extra rand and pray it stretches.” As South Africa navigates this economic tightrope, the wage hike’s true test—lifting lives without sinking jobs—lies ahead.
