The National Minimum Wage Act was signed by the President this week. Important information for skills-universe members and practitioners is the inclusion in Schedule 2 of Learnership Allowances.
In Schedule 1 of the Act all the minimum rates are now in one place:
R20 for workers generally
R18 for agricultural workers
R15 for domestic workers
EPWP R11 per hour, and
in Schedule 2 Learnership Allowances based upon the NQF level of the Learnership and the credits already achieved.
The Act introduces a Commission that will be responsible for reviewing and revising the rates.
The commencement of the NMW Act still has to be proclaimed, but this section was effective May 2017.
4(6) The payment of a national minimum wage cannot be waived and the national minimum wage takes precedence over any contrary provision in any contract, collective agreement, sectoral determination or law, except a law amending this Act.
The National Minimum Wage Act will come into effect on 1 January 2019.
How will that make a difference to the skills development world?
If I understand correctly the Allowances, which are included in the National Minimum Wage Age replace the allowances that are given in the Sectoral Determination 5. I have also attached the Sectoral Determination.
Personally, I do find the use of various words – allowance, wage, remuneration, confusing.