The Congress of South African Trade Unions (COSATU) welcomes the 2026 increase of inflation plus 1.5% (5% in total or R1.44) for the National Minimum Wage (NMW). This progressive above inflation increase raises the NMW from R28,79 per hour to R30.23 from 1 March 2026.
Whilst COSATU had tabled a slightly higher proposal, we are pleased that our demand for a positive above inflation increase secured the support of the Commission and the Minister for Employment and Labour, Ms. N. Meth.
The NMW Act mandates the Commission to ensure the NMW is not eroded by inflation as this would plunge many workers deeper into debt, poverty and despair. This positive increase will help protect the value of the NMW and workers’ ability to take care of their families. It will inject badly needed stimulus into the economy, spurring growth, sustaining and creating jobs. It will provide relief to nearly 6 million workers earning within the NMW range in particular farm, domestic, construction, retail, transport, hospitality, security, and cleaning workers.
COSATU is pleased with the progress we have made with the NMW since it came into effect in 2019 at R20 per hour, with domestic workers then pegged at R15 and farmworkers R18. They have both since been equalised with the NMW. The NMW is a far cry from the poverty wages farm and domestic workers were paid a few years ago, at times as little as R6 an hour. It is one of the government led by President Cyril Ramaphosa and the African National Congress’ most important and transformational achievements.
Engagements need to be accelerated with the Presidency, Treasury and the Departments of Cooperative Governance, Public Works and Infrastructure on a road map to ensure Community and Expanded Public Works Programmes’ workers are raised from the incoming amount of R16,62 to the full NMW. It is unacceptable that these workers remain pegged at just under 55% of the NMW. This must now end.
Whilst we have made progress, it is critical the Department of Employment and Labour intensify its crack down on defaulting employers. Unions must continue to expose such workplaces. Organised Business must play its part too. This is a criminal offence and should be treated as such. Such employers cannot be allowed to defy the law and treat their employees little better than slaves. Minister Meth’s bold commitment to employ an additional 20 000 inspectors will be a welcome boost to ensuring the abhorrent defiance of the law by some employers is dealt with.
Miserly critics of the NMW said it would lead to a job’s bloodbath. Independent research by leading academics has proven this not to be the case. It has had a positive impact on reducing poverty and inequality whilst boosting economic growth. Other countries who have introduced an NMW, e.g. the United States, Germany and Brazil have had similar positive experiences.
Beyond the NMW, government needs to expedite measures to tackle the network and other obstacles to growing the economy as well as reinforce the various elements of the social wage, e.g. subsidised public transport, education, housing, municipal services and social security. These are critical to fixing the state, unlocking the economy, reducing poverty, creating decent jobs as well as ensuring workers earn a living wage.
Issued by COSATU
Matthew Parks (COSATU Parliamentary Coordinator)
Mobile: 082 785 0687
Email: matthew@cosatu.org.za
