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The minister of Employment and Labour, Nomakhosazana Meth, recently announced a 4,4% increase in the national minimum wage for farm workers, effective 1 March 2025. This adjustment raises the minimum wage from R27,58 to R28,79, a decision that reflects the complex economic landscape currently faced by the agricultural sector in South Africa.
In response to the announcement, Johann Kotzé, Chief Executive Officer of AgriSA, stated: “We recognise that the National Minimum Wage Commission has strived to take a balanced approach in its decision-making process. This increase aims to safeguard the livelihoods of farm workers, while also considering the long-term sustainability and competitiveness of our agricultural sector, which plays a crucial role in the South African economy. With approximately 935 000 people employed in agriculture, it is imperative that we support both fair wages and the viability of our industry, particularly in rural areas where job creation is vital.”
The timing of this wage increase is significant as the agricultural sector is currently grappling with numerous challenges, including a contraction of around 5% in GDP for 2024. Recent disruptive weather patterns have led to severe drought conditions across many farming regions, placing considerable strain on producers and threatening profit margins over the short term. However, the Bureau for Food and Agriculture (BFAP) has indicated that assuming a return to more normal rainfall patterns, overall agricultural GDP could see a recovery with an expected growth of 3,5% in 2025.
This adjustment aligns with the National Minimum Wage Commission’s recommendation of CPI + 1,5%.
Here is the notice as published in the Government Gazette. – Compiled by Plaas Media
