Labour Law in South Africa – Annual Wage Increases and Other Current Matters

South Africa’s Labour and Employment Laws have seen some new introductions over the course of the past few years. Although some were berthed as a result of the COVID-19 pandemic, others came out of the woodwork in light of respective issues that were brought into the spotlight during these trying times. As of where we stand today, we have annual wage increases, a brand-new workplace code of conduct, and newly proposed bills for foreign nationals working in South Africa. Moreover, there has already been a selection of Con-Court rulings on these matters that are causing confusion, uncertainty, and doubt regarding how these changes affect the employee in their workplace.

Annual Wage Increases vs. Public Sector Wage Increases

The annual minimum wage in South Africa has been increased at the beginning of 2022, which came as good news to those working in the private, commercial, and industrial sectors. However, a recent Con-Court ruling rejected a 3rd tranche of wage increases for the public sector, after they have already had a 1st and 2nd tranche throughout the past 2 years. This ruling has public sector unions up in arms over the outcome. However, with the annual wage increase, the earnings threshold has also been adapted, which will have a direct impact when tax season comes along.

Employers’ Reactions to the Annual Wage Increase

In light of recent Con-Court rulings regarding multiple cases between public sector unions and the Minister of Public Services and others, employers might not be statutorily bound to pay the annual increases to their employees. Some have already managed to avoid paying the inflated increases and might be justified based on these rulings.

If you need a Labour and Employment Law expert in your corner when faced with a legal dispute, Allardyce & Partners Attorneys is your first choice in South Africa. Please contact us today on 011 234 2125 or email us at enquiries@allardyce.co.za for details on how we can assist you.

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