3 July 2013 by Cliffe Dekker Hofmeyr

Taxi drivers and hospitality staff get salary increase

Johannesburg July 2, 2013 - The Minister of Labour has announced an increase in the minimum remuneration payable to employees engaged in either the taxi or the hospitality sectors. The salary increase is effective 1 July 2013 and follows hot on the heels of the increase in the general Earnings Threshold communicated by the Minister yesterday.

“While there is not general minimum wage payable to employees in South Africa, section 51 of the Basic Conditions of Employment Act ("the BCEA"), empowers the Minister to establish basic conditions of employment in a sector and area. Upon advice of the Director General or the Employment Conditions Commission, the Minister may make a determination that is applicable to a specific sector of the economy. The Minister may set and vary minimum terms and conditions of employment, including remuneration, in the sectoral determination (section 55(4),” explains Johan Botes, Director in the Employment Practice at Cliffe Dekker Hofmeyr.

Botes says that ,at present, fourteen (14) such determinations have been made, establishing basic conditions of employment in the following sectors: Contract Cleaning, Civil Engineering, Clothing and Knitting, Learnerships, Private Security, Domestic Worker, Wholesale and Retail, Children in the Performance of Advertising, Artistic and Cultural Activities, Taxi, Forestry, Farm Worker and Hospitality Sectors.

The remuneration applicable to the taxi industry from 1 July 2013 are as follows:

Taxi drivers and administrative workers may not earn less than R2643.47 per month, or R610.08 or R12.71 per hour. The previous rate, applicable from 1 July 2012 – 30 June 2013, was R2449,90/R565.40/ R11.78. The new rates represent an increase of approximately 7.9%.

“In respect of the hospitality industry, a distinction is made between employers employing 10 people or less, on the one hand, and those with more than 10 employees. Employers with 10 or less staff have to remunerate them as follows from 1 July 2013: Minimum remuneration: monthly, R2 415.86; weekly: R557.55; hourly: R12.39. Employers with more than 11 employees must pay minimum monthly remuneration of no less than R2692.74, weekly wage of R621.45 or hourly wage of at least R13.81 – an increase of approximately 7.82%.”

Botes adds, “An employer may not remunerate an employee falling within the scope of the sectoral determination less than the minimum remuneration gazetted by the Minister. Of course, many employers pay their employees above the minimum amount, recognising the value of attracting and retaining quality employees through an appropriate remuneration framework.  For those employees earning a salary pegged to the minimum stipulated, the increase will come as welcome relief in the face of inflational increases such as the fuel price hike effective on 3 July 2013.”

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