Minimum Wage in South Africa

As of March 1, 2025, the minimum wage in South Africa is 28.79 rand (R) per hour (US $1.56), which equals R1,295.55 (US $70.29) in gross wages for a standard 45-hour workweek.

While South Africa’s minimum wage applies to most workers, labor laws include industry-specific variations, skill-based adjustments, and certain exemptions.

Businesses expanding into South Africa must navigate specific wage structures and regulations that can significantly affect hiring and compensation strategies. In this report, we break down the key differences and legal requirements, offering employers a straightforward guide to fair pay and compliance in the region.

Variances

The minimum wage in South Africa typically applies as a floor for all citizens. However, certain factors can cause variations in the minimum wage, such as:

Industry-Specific Wage Adjustments

Certain sectors have unique wage structures that differ slightly from the national minimum wage.

• Expanded Public Works Programme (EPWP): Workers in this program have a lower minimum wage than the standard. 
• Sectoral Determinations: Historically, domestic and farm work sectors had specific wage determinations, although recent adjustments have more closely aligned these with the national minimum wage. 

Skill Levels and Job Types

In South Africa, the minimum wage may also depend on the nature of the job and the skills required. Individuals under leadership agreements – as defined in the Skills Development Act – have specified allowances that may differ from the standard minimum wage. 

Collective Bargaining Agreements (CBAs)

Like many employment opportunities in other countries, CBAs play a significant role in South Africa. They are prevalent across many industries, such as mining, metal and engineering, clothing and textiles, and the automotive industry. 

For example, wage agreements in the mining industry often result in wages above the national minimum due to negotiations between employers and unions.

Exemptions and Special Arrangements

Certain employers may seek exemptions under specific conditions. The most common example is an employer facing financial hardship who applies for an exemption from paying the national minimum wage. However, the employer must be able to demonstrate these economic constraints. 

‍To make things easier, we offer an employee cost calculator to help businesses estimate wages for hiring employees from foreign companies in South Africa.

Casual and Temporary Workers

South African labor laws recognize casual workers – categorically similar to temporary workers who work less than 24 hours per month. These employees:

• Do not have a fixed commitment to ongoing or regular work.
• Are employed on a shift-by-shift or as-needed basis.

Casual employees typically forgo benefits like paid leave, medical aid contributions, and long-term security — perks that part-time workers in many other regions enjoy. To compensate for these exclusions, it’s not unusual for employers to offer a higher hourly rate.

Essentially, if employees work more than 24 hours per week, they are considered full-time employees and eligible for benefits under the Basic Conditions of Employment Act. Because casual work doesn’t promise steady earnings, employers may freely cancel or modify shifts without penalty. 

Another key distinction lies in how pay is determined for casual workers. Instead of applying standardized casual loading percentages as in other countries, South African casual workers' compensation is often dictated by CBAs or employer policies.

Apprenticeships 

Apprentices = Employees who learn their trade or profession while working for an employer under a training contract.

The minimum wage in South Africa for apprenticeships differs depending on:

• The stage of the apprenticeship (e.g., first year vs. third year).
• Industry-specific wage structures set by CBAs.

Some industries, including the automotive industry and metallurgy, have specific pay scales for apprentices that start below the national minimum wage but increase over time. 

Navigating South Africa’s Minimum Wage Is Complex, But We Can Help You Manage It

Use our free employee wage calculator to determine the necessary payments.

Minimum Wage in South Africa Over Time 

Until 2019, there was no federally mandated minimum wage in South Africa. Its first minimum wage came into effect on January 1 of that year when the National Minimum Wage Committee was established by section 8 of the National Minimum Wages Act 9 of 2018.

Since then, South Africa has significantly raised its national minimum wage, with an average increase of 6.2%.

Minimum Wage in South Africa, 2015-2025

Based on the current trajectory of these increases, the minimum wage in South Africa is likely to top R30.57 by March 2026.

Get up-to-the-minute updates on minimum wage and average income in South Africa with our emplyoer of record (EOR) services.

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Minimum Wage in South Africa, Compared

South Africa’s minimum wage remains among the highest in the region.

Minimum Wage in South Africa, Compared

*Amounts are converted to USD to maintain consistency across currencies

Although amounts vary by location, industry, and gender, the average monthly income as of Q4 2024 was R28,220. While the minimum wage and average income in South Africa are higher than those in many of its neighbors, hiring in South Africa allows foreign companies to tap into one of the continent's most educated and skilled labor pools. 

South Africa is one of the largest economies in Africa and is well-regarded for its universities and technical institutions that provide a strong workforce for the engineering, IT, finance, and business sectors. It remains a compelling choice for employers seeking skilled, reliable, and well-connected cross-border talent.

Hiring With an EOR

Whether you're looking to hire at minimum wage in South Africa or budgeting for industry-specific wages, businesses typically have two main options:

• Hire Directly: This approach involves establishing a legal entity and managing all aspects of payroll, taxation, and compliance in-house, placing the entire legal responsibility on the employer. While it grants extensive control, it also introduces considerable administrative demands and regulatory hurdles.

• Hire With an EOR: An EOR lets businesses hire in South Africa without establishing a local entity. This option speeds up expansion and minimizes risk, making it easier to onboard employees, manage payroll, and stay compliant with labor laws.

Beyond simplifying hiring, an EOR provides tools to support every stage of employment, from onboarding to payroll and compliance, helping businesses scale efficiently in South Africa.

For a comprehensive guide on direct hiring, explore a detailed breakdown of the process here.

For business owners looking for a streamlined approach, an EOR offers tailored solutions for every stage of the employee lifecycle, including:

Hire

Hiring internationally comes with compliance challenges, and South Africa’s labor laws are no exception. Ensuring proper employment classification, payroll management, and contract adherence is essential — especially when hiring at minimum wage or industry-specific rates.

An EOR simplifies this process by handling legal and administrative requirements. With an EOR, businesses can:

• Draft locally compliant employment contracts
• Reduce misclassification errors with employee designation tools
• Issue and track employee equipment upon hiring

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Pay

Expanding into South Africa also means handling cross-border payroll and currency exchange. Paying employees in rand requires seamless currency conversion, which can come with high banking fees.

An EOR provides multi-currency accounts, allowing businesses to transfer wages more efficiently while avoiding expensive conversion fees and administrative delays.
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Manage

Once employees are hired, an EOR provides essential workforce management tools to ensure smooth operations. Skuad’s platform, for example, allows business owners to:

• Calculate and issue employee benefits
• Track employee attendance and time worked
• Approve reimbursements for work-related expenses (e.g., phones, laptops, car rentals)

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The Skuad Platform

The minimum wage in South Africa can be deceptively complex. While a national rate sets the baseline, certain sectors — like domestic work or agriculture — often follow their own rules and exceptions. These added layers can make payroll calculations and compliance far from straightforward.

Such complexities drive many employers to partner with an Employer of Record (EOR) like Skuad, streamlining everything from wage calculations to legal compliance. 

Speak with our experts today to see how Skuad can help you navigate South Africa’s labor landscape and grow your cross-border team with ease.

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