The National Minimum Wage: who it covers, and what it costs to ignore

At a glance

Rate: R30.23 an hour from 1 March 2026

Who it covers: Almost every worker, including farm, domestic and foreign workers

Exceptions: Some categories have their own, higher rates; learners are treated separately

Not the whole story: Sectoral determinations can set a higher floor for your industry

Enforcement: Labour inspectors can order back-pay and issue fines

What it is

The National Minimum Wage is a floor, not a target. It is the least you may pay an ordinary hour of work, and it applies to nearly every employer and worker in South Africa — including foreign workers, who have the same protection as anyone else. Certain groups, such as farm workers, have their own minimums.

The important point: paying a worker below the minimum is not a negotiation — it is a breach. A worker's immigration status does not change their right to the minimum wage.

Quick figures

National minimum wage: R30.23 an hour from 1 March 2026.

Some sectors set their own, higher minimums, so confirm the rate that fits your workers before running payroll.

A worker's immigration status does not change the right to the minimum wage.

Who this affects

Every employer

From one-person start-ups to large firms, if you pay someone for their time, the minimum applies. Check your payroll against the current rate each March.

Farm and domestic employers

These groups have their own minimums, which are usually higher than the general rate. Do not assume the general figure is the one that applies to you.

Questions to ask first

Which rate applies to my workers — general, farm, domestic, or a sectoral determination?

Is the pay calculated on ordinary hours, before deductions? The floor is per ordinary hour worked.

Are my deductions lawful? You may not deduct your way below the minimum.

Do I have records proving hours worked and wages paid?

Has the rate changed this March, and did my payroll keep up?

What it costs to ignore

A labour inspector can order you to pay the shortfall back, and can issue a fine. Underpaid workers can also take a dispute to the CCMA or the Labour Court. Beyond the money, underpayment damages your ability to hire and keep good staff.

Steps to stay compliant

1. Confirm which rate applies to each group of workers — general, farm, domestic, or a sectoral determination.

2. Check that no deduction drops a worker below the minimum for an ordinary hour.

3. Update your payroll when the rate changes each March.

4. Keep records of hours worked and wages paid for every employee.

5. Review contracts and payslips so they reflect the correct rate.

Where the general rate does not apply

Some industries have a sectoral determination that sets a higher minimum than the general rate. Farm workers and domestic workers are the best-known examples.

People on learnerships and certain work schemes can be paid at a reduced rate set by the applicable rules, not the general rate.

Confirm which rule fits each group of workers before you run payroll, and review it when the rate changes each March.

If you are a foreign-owned company or employ foreign nationals

Paying the minimum wage depends on employing someone, not on who owns the business. A foreign-owned company must pay at least the minimum.

A worker's immigration status does not change the entitlement. Underpaying foreign workers can expose you to claims and to an unfair-labour-practice finding.

The proposed Employment Services Amendment Bill adds rules for employing foreign nationals — worth watching, but not yet law.