The Minister of Employment and Labour published a Government Notice increasing the national minimum wage from R25.42 per hour to R27.58 per hour effective 1 March 2024.

The R27.58 per hour rate also applies to farm workers and domestic workers, an increase from R25.42. While the rate for per hour for workers employed on an expanded public works program is R15,.16 an increase from R13.97.

Additionally, schedule 2 of the Government Notice indicates new rates for workers who have concluded learnership agreements contemplated in section 17 of the Skills Development Act, 1998 (Act No. 97 of 1998).

Note:
The changes to the wages should be applied in your March 2024 payroll.  If your company claims Employment Tax Incentive (ETI), remember to update your ETI Minimum Wage in March to align to new wage rates increase.

Parameters – Minimum Wage Earning Definition
In order to determine whether an employee earns more than the minimum wage it is necessary to define the earnings that must be included in the minimum wage. The Minimum Wage Earning Definition screen allows the user to select the earning definitions (across all companies) that must be added together and compared to the Minimum Wage type in order to determine if the employee is a qualifying employee.

Note:
If no earning definitions are selected, all earning definitions where the Earning Type = “Basic Salary” will be included in the Minimum Wage calculation.

To access the Min Wage on the Navigation pane:
Expand Parameters
Expand Payroll
Double-click on Min Wage Earning Definition Relationship



Minimum Wage Type
The user will be able to add the Minimum Wage types that must be used to calculate the minimum wage value. The Minimum Wage type linked to an employee will be compared to the employee‘s
Monthly ETI Remuneration in order to determine if the employee is a qualifying employee.

To access the Min Wage on the Navigation pane:
Expand Parameters
Expand Payroll
Double-click on Min Wage Type



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