This comes days before the cut-off date on 1 October 2022, for written representations to be submitted to the National Minimum Wage Commission concerning the possibility of adjustments to the national minimum wage.

The commission is requesting representations before sending its annual report and recommendations to the Minister of Employment and Labour, Thulas Nxesi.

Neasa’s Chief Executive, Gerhard Papenfus, says there has to be a balance when the national minimum wage increases, because this can also lead to a higher unemployment rate.

"South Africa is sitting at an almost 50% unemployment rate and an increase can lead to an even higher unemployment rate – which will mean the one (employed) person in the household will be taking care of more people," he adds.

Neasa will be conducting a survey till 1 October 2022 to help them compile "meaningful written representations" to the commission.

With the help of employers participating in the survey, Papenfus says they will also be able to see if South Africans can afford any more increases.

"The survey will help determine how much increase can be afforded," he says. The minister will, after receiving written representations, publish the report to get the public’s input. The date of the publication is yet to be communicated.

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The department increased the national minimum wage from R21.69 to R23.19 per hour, effective from 1 March 2022.

Nxesi said in the beginning of the year that the Commission considers the following factors when determining the annual adjustment:

• inflation;
• the cost of living;
• the need to maintain the value of the minimum wage;
• gross domestic product;
• wage levels and collective bargaining outcomes;
• productivity;
• employers' ability to carry on their businesses successfully;
• the operation of small, medium, or microenterprises and new enterprises;
• the likely impact of the recommended adjustment on employment or the creation of employment.

"Employees earning more than R224 080.48 per year are exempt from sections 9, 10, 11, 12, 14, 15, 16, and 17(2) and 18(3) of the Basic Conditions of Employment Act (BCEA) as of 1 March 2022," he added. 

These sections protect vulnerable employees by regulating, among other things, working hours, overtime, and compressed schedules.

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