SA to review minimum wage for 2026 increase

JOHANNESBURG — 1 September 2025

South Africa’s National Minimum Wage Commission has begun 2026 wage consultations, calling for public submissions by 18 September before recommending the new legal wage.

The commission examines annual adjustments and advises the Employment and Labour Minister on the required minimum wage. Employers must legally pay this rate or higher. The Department of Employment and Labour will collect submissions until the deadline.

The current minimum wage is R28.79 per hour. This follows a 4.4% increase implemented in March 2025 to match inflation. It equals roughly R4,737 monthly for 38-hour weeks or R5,610 for 45-hour weeks.

The 2026 review completes the commission’s medium-term targets set in 2023. Future increases will align with inflation (CPI) and South Africa’s median wage levels.

The commission considers inflation, cost of living, GDP trends, bargaining agreements, and employer capacity. This includes small businesses’ ability to absorb wage hikes without job cuts.

“Workers and unions typically welcome higher increases, while employers often warn of rising costs in an already fragile economy.”

Business groups criticised the 9.62% increase in 2024. The smaller 4.4% raise in 2025 was seen as a compromise between worker needs and economic pressures.

Based on current inflation trends, workers can anticipate at least a 3 percent increase in 2026 (source not provided). This would lift the hourly minimum to approximately R29.65.