Major changes coming to South Africa’s national minimum wage

South Africa’s National Minimum Wage (NMW) faces another revision as the NMW Commission begins consultations for 2026 adjustments.

Each year, the commission invites public submissions before making recommendations to the Minister of Employment and Labour.

These recommendations determine the new wage level, which employers are legally required to meet or exceed. The Department of Employment and Labour must receive submissions for the 2026 adjustments by 18 September 2025.

What to expect

The national minimum wage currently stands at R28.79 per hour, following a 4.4 percent increase in March 2025 to match inflation.

This amounts to roughly R4 737 per month for a 38-hour workweek or R5 610 per month for a 45-hour week. The 2026 review is important as it represents the final year of the commission’s medium-term targets announced in 2023.

These targets commit to annual increases above inflation, ensuring wages rise in real terms. Future hikes will be tied to South Africa’s consumer price index (CPI) and the country’s median wage level.

Factors guiding the commission’s recommendations include inflation, cost of living, GDP, collective bargaining, and the ability of employers, particularly small businesses, to absorb wage increases without shedding jobs.

Workers and unions typically welcome higher increases, while employers often warn of rising costs in an already fragile economy.

In 2024, the minimum wage increased by 9.62 percent, prompting criticism from business groups, while the smaller 4.4 percent rise in 2025 was viewed as a compromise.

Based on current inflation trends, workers can anticipate at least a 3 percent increase in 2026, which would raise the hourly minimum to approximately R29.65 or more.