Minimum wage rises to R30.23 an hour from 1 March

When the sun rises on 1 March 2026, millions of South African workers will officially earn more per hour.

The national minimum wage will increase to R30.23 an hour, a move the government says is aimed at shielding low-paid workers from inflation while avoiding job losses.

The Deputy Director-General at the Department of Employment and Labour, Thembikosi Mkalipi, says the adjustment follows the annual review process required by law.

“The National Minimum Wage Act requires that the commission reviews the wage every year and makes sure that it is not eroded by inflation,” he said.

Balancing wages and jobs

Mkalipi says the National Minimum Wage Commission must strike a delicate balance between raising wages meaningfully without pushing employers to cut jobs.

“You don’t want increases that are too high that would create unemployment. At the same time, you don’t want low increases that would be meaningless to vulnerable workers.”

He says research commissioned by the Department and conducted by the University of Cape Town shows that previous increases have not reduced employment.

“The effect of the minimum wage on employment is not negative. We’re not saying it increases employment, but we are saying it does not reduce employment.”

What the increase means in rands and cents

At R30.23 an hour, a worker employed for nine hours a day would earn about R272 for that shift.

Someone working once a week for nine hours would earn roughly R1,260 a month. A full-time worker could earn close to R5,700 a month, depending on hours worked.

The increase is particularly significant for domestic workers, farm workers and other low-paid employees, many of whom struggle to cover food, transport and school fees.

Compliance remains a major hurdle

Despite the legal framework, enforcement remains a challenge.

Mkalipi says compliance currently sits at about 60%, meaning roughly 40% of workers are not being paid the minimum wage.

“That’s the bigger challenge facing the commission and society,” he said.

The Department plans a workshop with international experts later in February to explore ways to improve enforcement.

Domestic work is especially difficult to police. Labour inspectors cannot simply enter private homes, and many workers are not unionised.

“An inspector can’t just go into your house. There are security issues. Arrangements must be made,” Mkalipi explained.

He added that some workers fear reporting non-compliance because they risk losing their jobs while disputes are being resolved.

Deductions and undocumented workers

The law allows limited deductions for accommodation and food in certain sectors, including domestic work, but these are capped.

On the issue of undocumented migrants, Mkalipi acknowledged that some employers exploit vulnerability.

“Whether you are documented or undocumented, the minimum wage applies,” he said.

However, undocumented workers are often reluctant to report violations, making enforcement even harder.

Ultimately, while the new rate offers relief on paper, the government concedes that ensuring compliance depends not only on inspections, but also on employers choosing to follow the law.

For more detailed information, listen to Mkalipi using the audio player below: