The incipient 2025 brought with it landmark changes in South Africa’s labor apparatus, most notable being an increase to the national minimum wage and the stipulation of new employment equity rules. All these are aimed at greater worker protection and address inequality at the expense of employers who have to undertake massive changes in how they conduct business.
National Minimum Wage Set to Rise
The national minimum wage was, due to a new statutory formula, increased from R27.58 to R28.79 per hour on 1 March 2025–an increase of approximately 4.4%. The rate applies universally-this now includes farm workers and domestic workers, demonstrating the government’s commitment towards broad-based wage support.
Workers under the Expanded Public Works Programme (EPWP, as per name temporary and government-instituted) continue to receive rather lower wages at the rate of R15.83 per hour. Meanwhile, stipends for learnerships have been adjusted upwards to encourage skills development.
Advantage and Disadvantage of Wage Hike
In regard to the increase of salary, it offers robust advantages to workers: more income for themselves, higher morale, and lowered possibility of turnover. Businesses, especially SMEs, find ask against pay enhancement. Some may downsize on hiring, cut hours, or raise levels of automation to keep costs under control; thus the very delicate balance between welfare of the working population and business survivability is set into consideration.
New Employment Equity Regulations Enacted
From 1 September 2025, employers with more than 50 employees will have to adopt Employment Equity Plans, which will last for five years, through to August 2030. The most notable feature of these plans is that they have to be based on the newly introduced sectoral numerical targets, one of which incorporates a 3% employment quota for persons with disabilities.
Achieving compliance with these targets will allow an employer to procure certificates without which it cannot bid for government contracts. Should the employer fall short of the target, proof must be given of reasonable justification; and the employer must not have any record of discrimination findings for it also to be considered for eligibility.
Practicalities of the Implementation for Employers
In practice, this means that employers have to rethink both payroll and workforce strategy. Priories include:
- Updating compensation structures according to new minimum wage standards.
- Drafting or considering revision of equity plans to meet sectoral consciousness in all occupational levels.
- Prepare evidence of either compliance or to reasonably justify the failure in case of exposure.
Also Read: SASSA Grants Rise In September 2025, Who Gets Paid And How Much