Proposed 2026 National Minimum Wage increase offers relief to South African workers

THE National Minimum Wage (NMW) Commission has announced its proposed inflation plus 1.5% increase for the NMW in 2026.

- SOLLY PHETOE

THE National Minimum Wage (NMW) Commission has announced its proposed inflation plus 1.5% increase for the NMW in 2026.

(REUTERS)

When approved, it will bring welcome relief to 5.5 million farm, domestic, construction, hospitality, transport, retail and other vulnerable workers earning within the NMW range. This will mean extra money in their pockets helping them take care of their families.

Whilst Cosatu had tabled a slightly higher proposal we appreciate that after difficult negotiations, we were able to prevail and secure the support of the Commission for a positive above inflation adjustment. There is value in consensus building between government, labour and business. But this must always be anchored upon uplifting the poor and protecting the most vulnerable in society.

The NMW Act requires the Commission to ensure the value of the NMW is protected from inflationary erosion as well as its ability to alleviate poverty and inequality. Inserting this progressive provision in the Act was a major victory as we often have seen how similar financial thresholds in other laws be eroded by inflation.

Cosatu is proud it has managed to ensure that since the NMW was introduced in 2019, it has seen positive above inflation increases each year in spite of the tough economic climate.

When the proposed CPI plus 1.5% increase for 2026 is implemented, it will see the NMW break the R30 level.

This will mean that we have managed to double the wages of domestic workers who started off at R15 an hour in 2019, and a 60% increase for farm workers who were originally pegged at R18 an hour.

Overall, it has meant a 50% increase for the NMW which was first introduced at R20.

Critics demonised Cosatu when the NMW was introduced in 2019.