National Minimum Wage (NMW)
The minimum amount payable in money by an employer to a worker for ordinary hours of work.
Definitions (2)
The National Minimum Wage (NMW) refers to the floor level of remuneration that an employer is legally obligated to pay a worker for each ordinary hour worked. This amount is specified in Schedule 1 of the National Minimum Wage Act, No. 9 of 2018, and is subject to annual adjustments as determined by the National Minimum Wage Commission. The NMW is calculated based on the amount payable in money for ordinary hours of work and explicitly excludes certain payments such as allowances for transport, equipment, tools, food, or accommodation (unless specified otherwise in a sectoral determination), payments in kind (unless specified otherwise), and gratuities like bonuses, tips, or gifts. Its primary purpose is to protect low-paid workers from unreasonably low wages and to contribute to the reduction of income disparities within the South African labour market.
The minimum total amount of money which the Act stipulates and requires an employer of labour to pay to the lowest paid worker or employee monthly in his establishment. Any agreement for payment of wages less than this amount is void.