Hospitality Sector Minimum Wage For 2017/2018: 5 Quick Facts To Know


BuzzSouthAfrica has obtained details of the Hospitality sector minimum wage for 2017/2018. The following are the facts about the new minimum wage:

1. The hospitality sector minimum wage for 2017/2018 was revised upward

According to the Department of Labour, “the minimum wage for South Africa’s vulnerable sector of hospitality has been revised upward.”

2. The minimum wage takes effect from 1st July 2017, will be effective until 30th June 2018.

As learnt, the hospitality sector minimum wage for 2017/2018 will take effect from 1st July 2017. And, the new Hospitality Sectoral Determination which governs minimum wage rate in the sector will be effective until 30 June 2018.

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3. The minimum rate for employers with 10 or fewer employees

From our gatherings, the minimum rate for employers with 10 or fewer employees are as follow:

  1. The new minimum rate for a monthly payment is R3,193.12. It was previously at R2,959.35 (2016/2017);
  2. The new minimum rate for a weekly wage is R736.92. It was previously at R689.97 (2016/2017);
  3. For an hourly wage, the new minimum rate is R16.36. It was previously at R15.17 (2016/2017).

4. The new wages for employers with more than 10 employees

Likewise, the new wages for employers with more than 10 employees are as listed below:

  1. A minimum monthly rate of R3 559.10 was approved. The previous rate was R3 298.52 (2016/2017);
  2. A weekly rate of R821.34 was also approved. It was previously at R761.25 (2016/2017);
  3. For an hourly rate, the new wage is R18.25. R16.91 was the previous rate.

5. The total increase is 7.9 percent 

Yeah, the total increase is 7.9 percent and, the 7.9% increase was arrived at using the consumer price index of 6.4 percent plus 1.5 percent, divulged the Department of Labour.

Meanwhile, the Congress of South African Trade Unions (COSATU) is “deeply alarmed” by the plan to retrench 8500 workers by Anglo Gold Ashanti.

According to the Congress, Anglo Gold Ashanti has submitted a notice detailing its intention to retrench 8500 workers.

“This decision validates the call by the federation that we need a Job Summit and a plan to deal with the issue of the ongoing retrenchments.

“This matter cannot be left at the hands of the workers and employers at a shop floor. It has now reached a crisis situation,” lamented COSATU.

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The Congress upheld that the mining sector is guilty of focusing on profit maximisation and increased mechanisation of the sector. The sector is not paying serious attention to job security and the re-skilling of the workers who are losing their jobs.

“These ongoing retrenchments lack a human face; workers that have been carrying the mining sector and the economy…are being dumped into the unemployment scrapheap,” COSATU added.