With effect from the beginning of this month the minimum wage rates have been increased by 7.2% after an  increase of 6.1% last year.  The monthly increase for larger employers is R221.54 per month.  Sectoral Determination 14: Hospitality Sector, South Africa published under Government Gazette No 36624 of 01 July 2013 has been amended with effect from July 1, 2016.  Although it is not stated in the notice it seems that the CPI must have increased by about 5.7%.  This is because annual adjustments are based on CPI (excluding owner’s equivalent rent) + 1.5%.  Employers will have to pay more.

The amounts in brackets apply to employers with 10 or less employees:

  • Monthly – R3,298.52 (R2,959.35) – previously R3,076.98 (R2,760.59)
  • Weekly – R761.25 (R682.97) –     previously R710.120 (R637.10)
  • Hourly –   R16.91 (R15.17) –      previously R15.77 (R14.15)

See: Determination 14, Hospitality Sector, South Africa as published by the Department of  Labour on 10 June 2016.

This post replaces an earlier incorrect post, now deleted, and apologies to the Department of Labour for basing the percentage increase on the figures for the year before last year.