Millions set for financial boost as minimum wage to increase by 5%

The National Minimum Wage Commission has recommended that South Africa’s minimum wage rise by inflation plus 1.5% in 2026, amounting to about a 5% increase.

This would raise the hourly rate from R28.79 to R30.23, affecting roughly 5.5 million workers.

Labour federation Cosatu has welcomed the proposal, describing it as a fair compromise that will help low-income earners cope with rising living costs.

The union's Matthew Parks says above-inflation increases since 2019 have significantly improved pay for vulnerable workers, with domestic and farmworker wages doubling over six years.

“This is the biggest, most important anti-poverty and transformation intervention by the government in the last few years.

"It's going to make a difference to those workers. They are going to put more food on their table.

"The cost of inflation affects everybody. The less you earn, the more painful inflation is. The workers themselves are hit especially hard, not just because of low wages, but also because of inflation. So, if you look at the issue of electricity, transport and so on, it's always far, far higher than CPI. It's critical that we push the wages up, we equalise them, and we'll always push for above inflation increases because again, if you just give inflation, they will actually be in deep trouble."

The Commission’s draft will now undergo public comment before a final recommendation is sent to the Minister of Employment and Labour early next year.

However, Cosatu has raised concerns about the government’s expanded public works and community work programme employees, who currently earn only 55% of the minimum wage.

Parks stresses that these wages must be urgently equalised, urging stronger enforcement against employers who flout labour laws, noting that an estimated 45% of employers fail to comply with minimum wage requirements.

To listen to Parks in conversation with 702 and CapeTalk's Africa Melane, click below: