PRESS RELEASE

5 February 2025

NATIONAL MINIMUM WAGE INCREASED

A FAILURE OF POLICY

On 4 February 2025, the Minister of Employment and Labour increased the National Minimum Wage (NMW) to R28.79 per hour with effect from 1 March 2025, which applies to all employees covered by the Basic Conditions of Employment Act As well as domestic- and farm workers.

NEASA realises that the Minister had no option but to increase the minimum wage as she is bound by a government policy that dictates the increase to the NMW.

However, NEASA reiterates that the whole concept of a legislated national minimum wage is simply not feasible or responsible in a developing economy like South Africa.  

Government interference in the free market leads to artificially created wage scales which are not in tune with the economic realities on the ground, and  will simply lead to further unemployment, reduction in working hours or simply non-compliance by employers.

In terms of current legislation, no person, no matter how desperate, may be appointed at a rate less than the NMW, leaving millions of potential employees destitute and reliant on meagre government grants.

NEASA states that employees should simply be paid according to their skills, and that the free market should be allowed to compete for the best and most valuable employees, which in turn will force wages up and compel employees to upskill themselves.

Government should do away with centric policies and allow the free functioning of the market which will lead to economic growth and increased employment opportunities.   

South Africa is in dire need of economic stimulation. The best method to achieve this is by fostering policies conducive to economic- and business growth, by implementing laws which encourage employment – allowing citizens to work, earn a living and become productive members of society.

ISSUED BY

Gerhard Papenfus

Chief Executive (NEASA)

MEDIA CONTACT

Charis Esema-Onaolapo

Media Liaison (NEASA)

083 393 4435

media@neasa.co.za