For thousands of South Africans struggling to survive, rising living costs continue to outpace income growth, forcing low-income households to make difficult choices between basic necessities.
As pressure on household finances intensifies, labour unions have raised concerns that the national minimum wage (NMW) adjustment for 2026 falls short of what workers need to live with dignity. The minimum wage will increase from R28.79 to R30.23 per ordinary hour worked, an increment of R1.44.
Employment and Labour Minister Nomakhosazana Meth announced the increase on Tuesday, 3 February 2026, confirming that the amended wage rate will take effect on 1 March 2026.
“The 1st of March 2026 is the date on which this amendment shall become binding,” Meth said.
While the increase applies to all workers, including vulnerable farm workers and domestic workers, many low-income earners argue that the adjustment does little to ease mounting financial pressures.
With food, transport and utility costs continuing to rise, questions remain over whether the increase provides meaningful relief or merely delays financial distress.
Riefdah Ajam, General Secretary of the Federation of Unions of South Africa (FEDUSA), told the Saturday Star that the R16.62 hourly wage paid to Expanded Public Works Programme (EPWP) workers is fundamentally unjust and inconsistent with the principles underpinning the national minimum wage framework.
“This rate amounts to almost half of the current national minimum wage, despite EPWP workers facing the same cost of living pressures as all other workers. According to Statistics South Africa’s 2026 food poverty line of R855 per person per month, it is impossible for an EPWP worker earning this wage to adequately support a household, particularly a family of four. Such remuneration entrenches poverty rather than alleviating it,” said Ajam.
FEDUSA reveals the challenges of EPWP workers who consistently report that their wages are insufficient to meet even basic needs.
“They struggle to afford adequate food, transport to and from work, school-related expenses, and healthcare costs. These challenges are compounded by rising administered prices, including electricity tariffs, water charges and transport costs. EPWP workers pay the same prices as everyone else, yet are expected to survive on wages that fall far below any reasonable living standard.”
The South African Federation of Trade Unions (SAFTU) rejected the announcement, saying the increase is grossly inadequate and fails to address the lived realities of workers and their families.
“EPWP workers are among the poorest and most vulnerable in society, yet the state continues to legally sanction their exploitation by paying them barely half of an already insufficient minimum wage. This arrangement entrenches inequality and contradicts any claim that government policy is committed to decent work and poverty eradication.”
“At face value, the increase from R28.78 to R30.23 represents a nominal adjustment of approximately 5%. However, this increase does not meaningfully keep pace with the real inflation experienced by working-class households. Official inflation figures mask the reality that the largest components of workers’ expenditure, food, electricity, transport, and municipal services, have risen far faster than headline inflation.”
The Public Servants Association (PSA) said the upward adjustment represents meaningful progress towards protecting vulnerable workers and ensuring wages keep pace with the rising cost of living.
“The increase will benefit workers across various sectors, including farm workers and domestic workers, as explicitly highlighted in the minister’s statement. The PSA views this as a positive step towards reducing income inequality and promoting dignified work for all who contribute to the economy.
“Whilst supporting the adjustment, the PSA remains concerned that workers under the Expanded Public Works Programme (EPWP) continue to be excluded from the statutory NMW framework owing to their special employment dispensation.”
“EPWP workers, who often carry out physically demanding and socially valuable work, remain amongst the most economically vulnerable. Excluding them from full NMW protection entrenches a two-tier wage system that undermines the principles of fairness, dignity, and social justice.”
The National Employers’ Association of South Africa (NEASA) criticised the minimum wage framework, arguing that it places strain on employers.
“This minimum wage serves no purpose; it will simply cause employers who cannot afford to pay to not employ or, alternatively, fly under the radar. An employer that cannot pay more will not pay more. Whether a statutory obligation exists or not will not make any difference. It is nonsensical for the government to not allow private sector employers and employees to negotiate a lower wage while the government has afforded themselves the right to pay employees almost 50% of the minimum wage on the Extended Public Works Programme (EPWP), under the guise of job creation.”
Employment law attorney Paula Phukuje of Fairbridges Attorneys said the increase, while modest, carries significant legal and practical implications for both employees and employers.
“South Africa’s national minimum wage has increased once again from R28.79 per hour to R30.23 per hour, continuing a trend aimed at protecting workers against the rising cost of living. While the increase may appear modest on paper, its legal and practical consequences are far-reaching and often misunderstood,” Phukuje said.
She said the adjustment would be felt immediately by workers, while employers face strict compliance obligations.
“For many employees, the new rate means a welcome adjustment to their pay. For employers, it introduces immediate compliance obligations, but beyond the headline number, the increase also affects working hours, overtime entitlement, and in some cases, the very protections employees rely on,” she said.
Phukuje emphasised the importance of understanding how the minimum wage interacts with other labour laws.
“Understanding how the minimum wage works and how it interacts with other labour laws is essential,” she said.
She added that the new rate is legally binding across most sectors.
“With effect from 1 March 2026, the national minimum wage has been set at R30.23 per ordinary hour worked. This rate applies broadly across most sectors and categories of employees. It is not a guideline or recommendation. It is a legally binding minimum, and no employee may be paid less than this amount for ordinary working hours,” Phukuje said.
She warned that the increase applies automatically, regardless of contract amendments.
“Importantly, the increase applies automatically. Even with employers failing to amend employment contracts for the new rate to take effect, the law itself enforces the change,” she said.
anita.nkonki@inl.co.za
Saturday Star