The South African national minimum wage is R30.23 per hour from 2 March 2026, up from R28.79 — a 5% increase gazetted in Government Gazette No. 54075. It applies to all workers, and it is an hourly rate rather than a monthly one, so what an employee is owed depends on hours actually worked.
The rate is easy. What catches employers is the consequence of getting it wrong on even one employee: your entire Employment Tax Incentive claim for that month is disqualified.
The rate and what it means monthly
R30.23 per hour from 2 March 2026.
Because it is hourly, the monthly equivalent depends on hours worked:
| Hours per week | Approx. monthly equivalent |
|---|---|
| 40 hours | R5,240 |
| 45 hours | R5,895 |
| 27 hours (part-time) | R3,537 |
Based on an average of 4.33 weeks per month. Actual pay must reflect actual hours worked.
Always check against the hourly rate, not the monthly total. An employee on a fixed monthly salary who works more hours than assumed can fall below the minimum without anyone noticing — and that is exactly where breaches occur.
Who it covers
All workers, including:
Full-time, part-time and casual employees
Domestic workers
Farm workers
Employees on learnerships, subject to the applicable allowances
Limited exclusions apply, including members of the defence force, the intelligence services and volunteers doing unpaid work.
Sectoral determinations and bargaining council agreements can set higher rates, and where they do, the higher rate applies. Check whether your industry has one — construction, motor, hospitality, security, road freight, wholesale and retail and others do.
What counts towards the minimum
The minimum wage is the amount payable for ordinary hours of work. It does not include:
Transport, equipment or tool allowances
Payments in kind such as accommodation or food
Tips, bonuses and gifts
Overtime premiums
So an employer cannot count the value of accommodation or a travel allowance towards meeting the minimum. The base hourly rate for ordinary hours must itself meet R30.23.
The ETI consequence
This is the rule with the sharpest teeth, and it is disproportionate by design.
If any employee is paid below the National Minimum Wage, the employer's entire Employment Tax Incentive claim is disqualified for that month — not just the claim relating to that employee.
Worked example. A business claiming ETI for four qualifying employees at R1,500 each is claiming R6,000 that month. One part-time worker is paid R28 an hour through an oversight. The full R6,000 falls away.
How to prevent it: run a minimum wage check across the whole workforce before every ETI claim, not just across the ETI employees. Check hourly rates, not monthly salaries, and pay particular attention to part-time and variable-hours staff.
See the Employment Tax Incentive explained.
Exemptions
An employer who genuinely cannot afford the minimum wage may apply for an exemption through the National Minimum Wage exemption system.
Key points:
Applications are made online
Exemption is granted for a limited period, generally up to 12 months
It permits payment of a reduced amount, not payment of nothing — there is a floor below which exemption is not granted
Financial information must be provided to demonstrate inability to pay
Employees or their representatives must be consulted
Exemption is not a formality, and it is not a workaround. It exists for businesses in genuine financial difficulty.
What happens if you underpay
The employee can claim the shortfall. Through the Department of Employment and Labour, or the CCMA.
A labour inspector can issue a compliance order requiring payment of arrears.
Fines apply. The National Minimum Wage Act provides for fines calculated by reference to the amount underpaid, with higher amounts for repeat contraventions.
Your ETI claim goes for every affected month.
Backpay is owed for the full period of underpayment, not just from the date you were caught.
Practical steps for employers
Review every employee's hourly rate each March. The rate changes annually, typically effective in early March, and the increase is gazetted. Diarise it alongside your payroll tax table update.
Calculate hourly, not monthly. Divide actual pay by actual hours worked for the period.
Watch part-time and variable-hours staff. They are where breaches happen, because a monthly figure that looks fine can hide an hourly rate that is not.
Check your sector. A sectoral determination or bargaining council agreement may set a higher floor than the national minimum.
Keep hours records. You need to be able to evidence hours worked, both for minimum wage compliance and for ETI.
Frequently asked questions
What is the minimum wage in South Africa? R30.23 per hour from 2 March 2026, up from R28.79. It is an hourly rate applying to all workers, with limited exclusions.
What is the monthly minimum wage in South Africa? There is no monthly minimum — the rate is hourly. At R30.23 an hour, a 45-hour week works out to roughly R5,895 a month and a 40-hour week to roughly R5,240, but actual pay must reflect actual hours worked.
Does the minimum wage apply to domestic workers? Yes. Domestic workers are covered by the national minimum wage, as are farm workers, casual staff and part-time employees.
Do allowances count towards the minimum wage? No. The minimum wage is the amount payable for ordinary hours of work and excludes transport, equipment and tool allowances, payments in kind such as accommodation or food, tips, bonuses and overtime premiums.
What happens if I pay below the minimum wage? The employee can claim the shortfall through the Department of Employment and Labour or the CCMA, a labour inspector can issue a compliance order, fines apply calculated by reference to the amount underpaid, backpay is owed for the full period, and your entire Employment Tax Incentive claim is disqualified for every affected month.
Can I apply for an exemption from the minimum wage? Yes, through the online National Minimum Wage exemption system, where the employer can demonstrate genuine inability to pay. Exemption is granted for a limited period, generally up to 12 months, permits a reduced rather than a zero payment, and requires financial information and employee consultation.
One rate, checked properly
The minimum wage itself is simple. The expensive part is the ETI interaction — one underpaid part-time worker wiping out a five-figure annual incentive claim, discovered months later in a payroll audit.
Smartbook checks minimum wage compliance across the whole workforce before every ETI claim, updates hourly rates each March, and keeps the hours records that evidence both.
Last reviewed: 26 July 2026. Written by the Smartbook team — SAIPA and SAICA accredited, SARS registered tax practitioners. The national minimum wage is adjusted annually by gazette — confirm the current rate before relying on it. Sectoral determinations may set higher rates. General guidance, not legal advice.
Primary sources: SARS — Budget 2026 Frequently Asked Questions · Department of Employment and Labour — National Minimum Wage · National Minimum Wage Act 9 of 2018