Exemption from the new National Minimum Wage

There is a system being developed which allows employers to apply for exemptions from the National Minimum Wage on line at www.nmw.dol.gov.za.  Don’t try to access it – it’s not available yet.

Draft regulations for the exemption process are available, but not yet finalised.

Employers seeking exemption will need to provide:
• Company registration number, name, nature of business, applicable bargaining council, physical address and contact person.
• UIF number
• Compensation for Injuries and Diseases Act (COIDA) number,
• SARS number.
• Full financial statements for the previous 2 years.
• Current financial year predictions.
• Additional information: depreciation, entertainment, write-offs, finance cost, donations, profit/loss on disposal of assets, operating expenses, tax, dividends and other expenses.
• Number of employees.
• Wages details.
• Hours of work.

Additional criteria will still be published

Exemption is not merely an application, but includes consultation with representative trade unions (50%+1 majority) and all employees. The consultation process is repeated every time exemption is needed.

Exemption, if successful, is from the date of exemption and not the date of application.  The minimum wage will have to be paid until exemption is granted.

Exemption will only be granted if evidence shows that the employer cannot afford to pay the minimum wage, and the necessary consultation has taken place.

The maximum exemption is 90% of the minimum wage:
• All employees can be exempted from R20 per hour to R18.
• Farm Workers exempted from R18 per hour to R16.20.
• Domestic Workers exempted from R15 per hour to R13.50.

Exemption is never more than 12 months.

Mark - 07:22 @ common, Industrial Relations, Human Resources, B-BBEE | 2 comments