Stephen Khola, the ECA’s National Labour Relations & HR Director, informs members of the 2020 wage increases.

Please note the important information below:

2020 wage increases

Please note that the following increases are to be implemented for the period 1 February 2020 to 31 January 2021.

  • All employees earning the prescribed minimum wages shall receive an increase no less than 5%.
  • All other the employees earning in excess of the prescribed minimum wages shall receive an increase no less than 4%.

Important notice

Areas that are below the minimum wage will not grant wage increases in those categories that were increased to R20 per hour because of the requirement to comply with the minimum wage until the prescribed NBCEI rates have caught up to the minimum wage.

For example, if the council’s prescribed minimum wage would have been R15.00 per hour in a particular area, the 5% increase would have pushed such minimum wage to R15.75.

As agreed at national council level, no increase will be effected in such categories until the annual increases have caught up to the national minimum wage. Please check the area you fall under so as not to miss out on this important concession.

Notwithstanding the above, please note that all applicable levies will be calculated at the minimum rate as prescribed in the collective agreement, except for SBF contributions and payments which will be made at R20 per hour.

  • Offset

The guaranteed minimum wage increases referred to above, shall be subject to the provision that any wage increases granted on or after 1 January 2020 may be offset by the employer when calculating the guaranteed minimum increase.

  • Increases to allowances from 1 February 2019

Transport Allowance

An employee using his own vehicle for official purposes shall be paid a transport allowance in the amount of R3.53 per kilometre.

Subsistence Allowance

The subsistence allowance shall be increased to R141.51 per night.

Stand–by allowance

The stand-by allowance shall be increased to R92.78 per shift.

I take this opportunity to welcome you back from the festive recess and trust that you have had a wonderful break. I wish you all a successful year ahead.

Stephen Khola, National Labour Relations & HR Director

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