The Hospitality Sector’s new minimum wage has been adjusted upward with effect from 1 July 2014. The new wage adjustments will be applicable until 30 June 2015.
In terms of the Sectoral Determination (SD) - which prescribes minimum wage rates and conditions of employment in the Sector - the new rate increase are demarcated into two.
For employers who with 10 or less employees the new minimum rate will apply as follows: Monthly rates will increase from R2 415,86 (2013/14) to R2 601,88 in (2014/15); Weekly R557,55 (2013/14) to R600,48 (2014/15) and hourly rates will be adjusted from R12,39 in (2013/14) to R13,34 in (2014/15).
While the minimum wages for employers with more than 10 employees the minimum rates will apply as follows: Monthly rates will increase from R2 692,74 (2013/14) to R2 900,08 in (2014/15); Weekly R621,45 (2013/14) to R669,30 (2014/15) and hourly rates will be adjusted from R13,81 in (2013/14) to R14,87 in (2014/15).
The Hospitality Sector in terms of Sectoral Determination covers any commercial business or part of a commercial business in which employers and workers are associated for the purpose of carrying on or conducting one or more of the following activities for reward: those that provide accommodation and/or prepare, serve or provide prepared food or liquid refreshments, drinks other than in sealed bottles or cans whether indoors or outdoors or in the open air, for consumption on or off the premises in a hotel, motel, inn, resort, game lodge, hostel, guest house, guest farm or bed and breakfast establishment.
It also includes short stay accommodation, self-catering, time shares, camps, caravan parks, restaurants, pubs, taverns, cafés, tearooms, coffee shops, fast food outlets, snack bars, industrial or commercial caterers, function caterers, contract caterers and includes all activities or operations incidental to or subsequent on any of the activities mentioned above.
The Hospitality Sector SD excludes workers and employers involved in the trade of letting of flats, rooms and/or houses. It also excludes all workers and employers covered by another sectoral determination in terms of the Basic Conditions of Employment Act. It further excludes areas that are covered by a Statutory Council or a Bargaining Council.
The current wage increases have been determined by utilising the consumer price index of 6,2% (excluding owners’ equivalent rent) reported by Stats SA on the 23 April 2014. The minimum wage increases is therefore determined by adding 6.2% plus 1.5% as stated in the current Sectoral Determination. The total increase is 7.7%.
Enquiries:
Departmental Spokesman
Page Boikanyo
Cell: 082 809 319
