NATIONAL MINIMUM WAGE ACT
19 AUGUST 2019
The Labour Law in South Africa
Important changes have been made that affect the labour law in South Africa. It is important to take note of these changes. Two of the most prominent issues that affect labour law and employment relations in 2019 will be discussed below.
The first issue which is relevant to labour law in South Africa for 2019 is the National Health Insurance (NHI) Bill. Tminimum wage legislation will significantly affect the labour law issues in South Africa.
The NHI Bill and How It Affects Labour Law in South Africa in 2019
The NHI Bill is said to ensure more access to high-quality healthcare for everyone. The aim is to ensure that such access is free through the creation of one national health insurance fund. Once promulgated, the legislation will provide the centralisation of state-sponsored medical supply procurement. The NHI Bill is important for employees because it affects how they access medical aid benefits and healthcare.
What is significant about the bill is that all South African citizens must become members of the National Health Insurance Fund. What is not clear is how membership contributions will work. However, every person that is able to contribute will be expected to do so. There will be no choice here.
What seems to be problematic is the fact that if members opt to stay members of private medical aids, they will still be obliged to contribute to the NHI Fund. This will mean additional expenses for employees who wish to keep their private medical aid benefits.
The emphasis of the NHI Bill is that everyone will have access to high-quality and free healthcare. How the NHI will be funded is not yet clear. As for the start of 2019, it is certainly something that can cause some employees to have more deductions on their payslips than others. How it will affect labour law in South Africa is yet to be seen.
There have been suggestions about funding the NHI that include tax deductions and payments similar to the tax deductions for PAYE, which would then be paid to the NHI Fund. If this method is implemented, then employers are also in for payroll expense increases, as they then have to contribute to the NHI Fund. The good news for employers is that it seems as if they will not be required to make contributions to private medical aids on behalf of employees. However, they can choose to do so as long as they also contribute to the NHI Fund.
Where employers opt to discontinue their contributions to private medical aid schemes on behalf of employees, the terms and conditions of employment contracts will change. As such, the bill will affect labour law regulations in South Africa as well. The employer’s actions can potentially lead to unfair labour practice issues in 2019, especially if the terms and conditions of employment are not changed correctly.
National Minimum Wage Act for South Africa
The act, together with changes in the Labour Relations Act and the Basic Conditions of Employment Act, became effective from the start of 2019. Employers must now pay the national minimum wage, which has been set at a minimum of R20 per hour for all citizens in South Africa.
The forestry and farming sectors, in addition to employers of domestic workers, have been exempted from the R20 per hour. Accordingly, the farming and forestry sectors can pay 90% of the national minimum wage per hour and employers of domestic workers can pay 75% of the national minimum wage per hour. These sectors are exempted for two years, after which the new minimum wage law applies to all employers in South Africa.
29 APRIL 2019
LABOUR RELATIONS ACT, 1995
BARGAINING COUNCIL FOR RESTAURANT, CATERING AND ALLIED TRADES:
EXTENSION TO NON -PARTIES OF THE MAIN COLLECTIVE AGREEMENT
I, MILDRED NELISIWE OLIPHANT, Minister of Labour, hereby in terms of section 32(2) read with section 32(5) and section 32(8) of the Labour Relations Act, 1995, declare that the Collective Agreement which appears in the Schedule hereto, which was concluded in the Bargaining Council for the Restaurant, Catering and Allied Trades, and is binding in terms of section 31 of the Labour Relations Act, 1995, on the parties which concluded the Agreement, shall be binding on the other employers and employees in that Industry with effect from the second Monday after the date of publication of this notice and for the period ending 31 May 2023.
NATIONAL MINIMUM WAGE EFFECTIVE 1 JANUARY 2019
30 JANUARY 2019
MINIMUM WAGE MAY 2018
17 MAY 2018
MINIMUM WAGE MAY 2018
Remuneration Employers must pay to Employees:
No Employer shall pay and no Employee shall accept wages lower than this:
Admin/Office Assistant ………………. R5 713.83
Cashier ………………………………….. R3 416.04
Butchery Assistant ……………………… R3 416.04
Shop Assistant …………………………. R3 280.69
Manager ………………………………… R9 384.23
Master meat cutting tech, grade IA …… R8 680.92
Meat cutting tech, grade IB ……………. R7 559.91
Meat cutting tech, grade II ……………. R4 568.84
Driver …………………………………… R3 891.99
Security Officer ………………………… R3 891.99
Area Manager …………………………. R15 273.15
When must an Employer register with the Council?
Every owner shall ensure that each establishment he/she owns or operates in the Trade is registered with the Council within 14 days of entering or commencing operations in the Trade.
What Funds are payable to the Council:
- Every employer shall, in respect of each and every establishment he/she owns or Probation – DO’s and DON’T’s every Employer should be aware of conducts, pay a monthly levy of R45.00 per establishment;
- Every employer shall deduct 1% of the prescribed minimum wage, as prescribed above, from the wage payable to each employee and add to such deduction an equivalent amount;
- The employer shall ensure that the above amounts are received by the Council by no later than the 7th day of each succeeding month.
Settlement Agreement for the Wage Negotiations
30 JANUARY 2018
The National Minimum Wage Bill, 2017
26 JANUARY 2018
What does the publication of the National Minimum Wage mean for Employers?
What is the national minimum wage in terms of Schedule 1?
Minimum wage act
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