Applying for an Exemption from the National Minimum Wage

Applying for an Exemption from the National Minimum Wage

Legislation, Payroll / eTorQue

On 19 December 2018, the Minister of Labour gazetted the process for companies to apply for an exemption from the National Minimum Wage.

It is important to note the following:

  • The exemption, if granted, is only for 12 months.
  • The applicant needs to show it cannot afford the minimum wage and must have consulted all applicable unions and bargaining councils.
  • Even if granted, the company will still need to pay a minimum of 90% of the minimum wage (R18 per hour currently).