NATIONAL MINIMUM WAGE CHANGES
Yesterday, the National Assembly at Parliament officially passed the National Minimum Wage Bill. This bill means that all workers, except those employees who fall under the following sectors: domestic, farm, forestry, Extended Public Works Programs (EPWP) and learnerships, should earn no less than R20 per hour as a minimum wage.
For the farm or forestry sector, the minimum wage is R18 per hour; equating to 90% of the minimum wage. For the domestic sector, the minimum wage is R15 per hour, being 75% of the minimum wage. EPWP employees are to earn no less than R11 per hour being 55% of the minimum wage. These amounts will be subject to adjustment within two years of implementation.
The bill will be sent to the National Council of Provinces for confirmation, before being signed into law by President Cyril Ramaphosa. This is expected to take place after the two-month recess by Parliament. It is uncertain as to when the National Minimum Wage will come into effect.
Currently, all prescribed wages below the R20 an hour mark remain enforced until the Minimum Wage Bill is enacted.
The Unemployment Insurance Amendment Act is soon to be implemented. With Parliament’s adoption of the Labour Laws Amendment Bill, will enable the implementation of the Unemployment Insurance Amendment Act. The purpose of this act is to promote access to the Unemployment Insurance Fund (UIF) for numerous unemployed workers.
- Unemployment cover:
The act will increase UIF benefits from 238 to 365 days / from 8 to 12 months.
Public servants are to be included and covered under the UIF in the event of a dismissal. Workers will also observe a reduced credit cycle that is required to be eligible to claim UIF. Short time workers will also be covered at their full-time rate in the event of dismissals, maternity leave or retrenchments.
- Maternity leave:
Government employees (belonging to the Government Employees Pension Fund) are now eligible for UIF benefits whilst on maternity leave. This also includes women who had miscarriages in their third trimester or in the event of still-born births. Maternity leave benefits are increased from 54% to 66% of salaries.
- Beneficiaries to a Deceased’s UIF:
Family dependents (spouses / life partners / dependent children) are now entitled within 18 months, to the remainder of a deceased person’s remaining UIF.
– CEO Collective Bargaining Team