The National Minimum Wage (NMW) came into effect on the 1st of January 2019. It is important for every employer to know and understand the intricacies of this new legislation.
Click here to view a summary of the application on your payroll.
Important notice if you claim ETI:
Based on the ETI Act, employees would technically qualify if they earn a wage equal or more than the rate as specified in the sectoral determination, bargaining council agreement or collective agreement. However, the national minimum wage (NMW) takes precedence over any of these agreements/determinations and therefore, the employee should at least earn the minimum wage based on the National Minimum Wage Act. If employees qualify based on a rate as determined in the agreement/determination, and it is below the national minimum wage rate, it might result in incorrectly claiming ETI as the employees should not earn a wage as specified in the agreement/determination if it is less than the national minimum wage.
We advise to amend the minimum wage (for ETI purposes) for employees to whom a bargaining council agreement/collective agreement is applicable and whose wage rate is currently set below the national minimum wage.
Click here to view more detail how to change your minimum wage code.
National Minimum Wage Seminar
The Payroll Authors Group South Africa (PAGSA) is presenting a seminar on this topic in February 2019. Should you wish to attend or need more information, please send a mail to Lindy Smit ([email protected]).