The Department of Labour have released the amended minimum wage tables for Hospitality.

As you are no doubt aware, the minimum wages prescribed under Sectoral Determination 14, are to be increased on the 1st July 2008.

The Determination stipulates that the increase on the minimum wage must be CPIX plus 2%.

The Department of Labour has now released the new schedule for minimum wages as of the 1st of July 2008. In terms of this schedule,

there will be a 12.1% increase on the minimum wages. This is based on a CPIX of 10.1% plus 2%. The table below illustrates the effect in monetary terms:

Hospitality Sectoral Determination No 14

Minimum Wage Schedule for the period 1 July 2008 to 30 June 2009

Hospitality Sector
Table 1: Minimum wages for employers with 10 or less employees
Minimum rate for the period / Minimum rate for the period / Minimum rate for the period
1 July 2007 to 30 June 2008 / 1 July 2008 to 30 June 2009 / 1 July 2009 to 30 June 2010
R.p.m. / R.p.w. / R.p.h. / R.p.m. / R.p.w. / R.p.h. / R.p.m. / R.p.w. / R.p.h.
R 1,480.00 / R341.60 / R 7.59 / R 1,659.08 / R 382.93 / R 8.51 / Previous Minimum wage +CPIX + 2%
The CPIX rate used to calculate the minimum wage increase applicable from 1 July 2008 to 30 June 2009 is the rate that was available 6 weeks prior to the increase becoming effective, which is the May 2008 CPIX rate of 10.1% plus 2%. The minimum wage increase will therefore increase by 12.1%.
Hospitality Sector
Table 2: Minimum wages for employers more than 10 employees
Minimum rate for the period / Minimum rate for the period / Minimum rate for the period
1 July 2007 to 30 June 2008 / 1 July 2008 to 30 June 2009 / 1 July 2009 to 30 June 2010
R.p.m. / R.p.w. / R.p.h. / R.p.m. / R.p.w. / R.p.h. / R.p.m. / R.p.w. / R.p.h.
R 1,650.00 / R 380.80 / R 8.46 / R 1,849.65 / R 426.88 / R 9.48 / Previous Minimum wage +CPIX + 2%
The CPIX rate used to calculate the minimum wage increase applicable from 1 July 2008 to 30 June 2009 is the rate that was available 6 weeks prior to the increase becoming effective, which is the May 2008 CPIX rate of 10.1% plus 2%. The minimum wage increase will therefore increase by 12.1%.

PLEASE NOTE:

1.The 12.1 % increase applies ONLY to the minimum wage currently being paid in terms of the Sectoral Determination, i.e. R1650 per month or R8.46 per hour. Some Trade Unions are implying that the 12.1 % increase is applicable across the board.This is not so.

2.This isnot applicable to Restaurant and Catering employers falling under a Bargaining Council Agreement CATRA in Johannesburg areaand CATRA in Pretoria area). You will need to comply with the requirements of the CATRA Agreement that you fall under.