The National Minimum Wage Act

 

The National Minimum Wage Act

As of January 2019, the first ever National Minimum Wage Act came into effect, and while most employers have embraced this initiative, we thought that we would give you a summary to re-cap.

 

What is the rate?

The legislation stipulates a minimum national rate of R20 per hour, or R3 500 per month, depending on the number of hours worked.

The R20 an hour rate will be phased in slowly in the agriculture and domestic work sectors, with workers earning R18 and R15 per hour respectively.  Employees who are on volunteer programs or learnerships are exempt from the act.

This means

DAILY MINIMUM WAGE         R20 x 8 hours = R160  or R20 x 9 hours = R180

WEEKLY MINIMUM WAGE     R20 x 40 hours = R800 or R20 x 45 hours = R900

MONTHLY MINIMUM WAGE R800 x 4.333 = R3 466.40 or R900 x 4.333 = R3 899.70

 

Employees are also entitled to be paid for a minimum of 4 hours, even if they work fewer.

Allowances that make an employee able to work such as tools; equipment; transportation and accommodation) will have these allocations included when calculating their wage; as will bonuses, incentives, tips and gifts be excluded from the minimum wage.

No employee may make deductions in excess of 25% of the employee’s remuneration.

 

When did it become law?

 The National Minimum Wage will be applicable and enforced as from 1 January 2019

 

What happens if you do not pay the minimum wage of R20.00 an hour?

The minimum wage is law, so if you do not pay it, your staff can report you to the department of labour or the CCMA.  Even if your staff agree to work for less, or to get paid for fewer hours than four hours, they are still legally entitled to it, as it falls under the Basic Conditions of Employment Act.

The Act does allow for an employer to make an application to be exempt from paying the minimum wage, for not longer than one year.

 

When will the Minimum Wage Increase?

The Act states that the minimum wage must be reviewed after 18 months and increases in two years.  The review will specifically take into account inflation, productivity, the effect on employment and businesses ability to cope with the increase in wage expenses.

 

If you would like a copy of the National Minimum Wage Act, you can obtain one from the Department of Labour’s Website.  (http://www.labour.gov.za/DOL/legislation/acts/national-minimum-wage/national-minimum-wage)

PUTTING FIRST THINGS FIRST

Habit 3: Putting First things First

In the first habit we discussed the importance of taking responsibility for your life and what happens to you.  The second habit looked at leadership- accessing your right brain and creating a mental picture of what you want for your life.  The third habit is about management of that vision, and making it a reality. 

 

We often tell job seekers that looking for a job, is a job in itself. 

 

There are four generations of time management:-

  1. To do lists and tasks
  2. Diaries and planners
  3. Goal setting
  4. Prioritizing

 

If you want more time to spend on the important things in life and achieving your goals, then you need to take control of your life and start scheduling in what is important.  If you are not proactive and take control of your activities, your activities start controlling you, and you will spend most of your time in crisis management, and less time in planning and making your goals a reality.

 

  1. Have a look at all the aspects of looking for a job:-
  • Creating a vision or mission statement for what kind of job you want (habit 2)
  • Drawing up a professional CV
  • Getting your CV to potential employers
  • Succeeding in interviews
  • Taking control of the feedback
  1. Next, set at least one goal for the week ahead for each aspect that you have listed as important:-
  • Creating a vision or mission statement for what kind of job you want (habit 2)
    1. Draw up a list of all the things you liked and disliked about your last/ current job
    2. Do a behavioural profile to determine what jobs you are best suited to
  • Drawing up a professional CV
    1. Re-type your old, hard copy CV in a document that is easy to edit and update
    2. Get a professional photo to put on your CV
  • Getting your CV to potential employers
    1. Send your CV to three employment agencies
    2. Load your CV onto one job portal
  • Succeeding in interviews
    1. Research three commonly asked interview questions, and write down answers
  • Taking control of the feedback process.
    1. Follow up with two companies that you have sent your CV to
  1. Finally, schedule the goals that you have set for yourself into the week ahead. Make them a priority.  When you are offered a less important way to spend your time, act with integrity towards yourself, and honour your commitment to yourself. 

Make sure to schedule some time in your week to uplift yourself and work on yourself.  People get too wrapped up in achieving goals and ticking items off their to- do list, that they forget that it is important to spend time on yourself and your spirit. 

You can apply the above method to any role that you play in your life.  If you are a parent, and it is important to spend quality time with your children, schedule to read them a bedtime story, and make it a priority.  If you want to get healthier, schedule to take a walk twice this week at lunch time and make it a priority.  Honour your word to yourself. 

 

If you fail to plan, you plan to fail!

 

(inspired by “The Seven Habits of Highly Effective People” by Stephen Covey. 

 

START WITH THE END IN MIND

“The Second Habit of Highly Effective Job Seekers” is “Start with the End in Mind”.

 

Too many people come into an interview, and they have no idea what they want to do, or what they are good at.  They just know that they want another job, and all the bad things that they want to avoid, and how much money they need to earn.  People will never employ you because you “can do the job”, they will employ you because “you want to do the job”.  They want to employ staff that are focused, motivated and know where they are heading.

 

This is not to say that you need to know the exact title of the job that you will get, but you do have to know your strengths and weaknesses, what you are passionate about and the values you live by.  Blindly going into the job market, accepting any job, because superficially it looks good or the salary is right, will result in you being back on the job market a year later. 

 

Before you start looking for a job, imagine yourself at your Retirement Party.  What will you want people to say about you?  Will you have clients there, and what will they say?  Will have you staff that you have trained and mentored- will they miss you?  What will they say your greatest accomplishments will be?  What legacy will you leave behind?  

 

The Second Habit states that all things are created twice- once mentally, and then again physically.  When you build a house, mentally you will draw up plans, and then physically you build the house.  This is true to all aspects of your life.  The first creation happens either by design or default.  Either you can intentionally plan how you want your life to go- dream it up- or you fall at the mercy of other people who will plan your role in it. 

 

Before you can start being the primary creator of your life, try and take a step back and get some perspective.  Examine your life and how you feel about all aspects of it.  The left side of the brain is about words, planning and action, and the right side is about creating and dreaming, but not very good at words.  To access the right side of the brain, start writing.  Write a list of what you have liked and disliked about previous positions, companies and organizations; and about subjects at school and extra murals or projects, if you are still at school.  List any activity, private or professional; paid or voluntary, that inspires and motives you.  Keep a note pad with you and as soon as a thought comes to mind, add it to the list.  Put all your ideas to paper, and then start refining them, until you have a “picture” of the kind of position you will work for.  Not the title, but actual day to day duties, the purpose of the job, the feelings it will make you feel. 

 

(And just to catch you before you get started… your mission statement will never be about money.  Money is a reward for a job done well; a job will never be well done, purely for the money.  Studies have shown that while a lack of money may contribute to unhappiness, abundance of money does not increase happiness or job satisfaction.)

 

As soon as you have created this initial creation of your future, you will feel inspired and motivated, and it will come across in interviews.  You will become that person who knows what they want to do, even if they don’t know what it’s called. 

 

If you keep focusing on the end and staying true to the person that you want to be, you will see your career grow and develop (and the money will follow if that is important to you).  If you focus on climbing the corporate ladder for the sake of it, you may just find that you have put that ladder against the wrong wall, and you are climbing away from your end goal, no towards it.

 

(inspired by “The Seven Habits of Highly Effective People” by Stephen Covey.