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The National Minimum Wage Commission, which reviews and sets wage adjustments, has flagged some rural regions in the Eastern Cape, KwaZulu-Natal and the Free State as having high noncompliance rates with the legislated national minimum wage.
In its report, the commission said the regions of Joe Gqabi (Eastern Cape), uThukela and Harry Gwala (KwaZulu-Natal) and Thabo Mofutsanyana (Free State) had the highest noncompliance rates regarding “paying the national minimum wage”.
“These are predominantly rural districts with relatively low average wage levels, limited economic diversification, and high concentrations of agriculture and low-skilled service employment,” the report says.
“This is also where in-kind payment may account for a larger share of worker wages bills, which is not recorded in the data we use.
“In contrast, the lowest noncompliance rates are observed in large metropolitan and more economically developed districts, including the City of Tshwane (Gauteng), Overberg (Western Cape), Mangaung (Free State), City of Cape Town (Western Cape) and Nelson Mandela Bay (Eastern Cape).
Tshwane is host to vehicle manufacturers including BMW, Ford and Chery, while Nelson Mandela Bay is home to original equipment manufacturers (OEMs) including VW, Isuzu, BAIC and FAW.
Trade unions operating in the car sector, including the National Union of Metalworkers of SA (Numsa), always demand above inflation wage increases and better conditions of employment in discussing new wage deals with car sector bosses.
In late 2025, Numsa secured above-inflation wage agreements with the seven OEMs representing the country’s multibillion-rand car sector.
The three-year, across-the-board pay deal, expiring on June 30 2028, will see workers at Toyota Motors SA, Nissan, Isuzu, Ford, VW SA, BMW SA and Mercedes-Benz receiving increases of 7% in July 2025 (backdated) and 5.5% in the outer years. The inflation rate is 4.4%.
Numsa also managed to squeeze out a R12,500 one-off strike-free taxable gratuity, while the transport allowance will increase from R3,555.53 to R4,500.
The current national minimum wage is R30.23 per hour, and organised labour wants the figure increased to R33 per hour from March 1 2027.
The Federation of Unions of SA (Fedusa) said the proposed increase represents about 9.2%, or R2.77 more per hour, and would raise the monthly earnings of a worker working a 40-hour week to about R5,720 before deductions.
“The gap between the statutory minimum and the cost of meeting basic needs is further illustrated by household affordability data. The Pietermaritzburg Economic Justice & Dignity Group reported an average household food basket of R5,479.80 in August 2026, while its basic nutritional food basket stood at R6,597.25. For a worker earning the current national minimum wage, these figures demonstrate how little income remains once basic necessities are taken into account,” Fedusa said.
“This is why South Africa needs a deliberate, credible and progressive pathway from the minimum wage towards a living wage. A minimum wage must not become a maximum wage. Employment must provide a pathway out of poverty, not simply a legal relationship between an employer and an employee.”
The federation said the proposed R33 per hour was a responsible transitional step towards closing the gap between the statutory minimum and a living wage. “It is not the end point. It is a step towards ensuring work provides workers and their families with greater economic security, dignity and a realistic opportunity to improve their standard of living,” it said.
“This is not simply about numbers. It is about whether work provides people with dignity, security and a realistic pathway out of poverty.”
Business Day
Luyolo Mkentane
www.businesslive.co.za