The Congress of South African Trade Unions (COSATU) has raised alarm over employers allegedly violating the national minimum wage, warning that paying employees less than the mandated R27.58 per hour is illegal.
A recent study by the National Minimum Wage Commission revealed evidence of partial or complete non-compliance by certain employers.
Matthew Parks, Cosatu's parliamentary coordinator, called on the Department of Employment and Labour to intensify inspections to address these violations.
Parks clarified that the Minimum Wage Act does allow for exemptions under specific conditions, stating that employers facing financial difficulty can apply for an exemption by consulting with their employees or unions and providing evidence such as bank or financial statements. If approved, an exemption can be granted for one year, allowing a 10% reduction from the minimum wage. About half of the companies applying for exemptions have received approval.
The union federation is urging the government to enforce stricter compliance to ensure fair wages for all workers.