The Federation of Unions of South Africa (FEDUSA) has called for the National Minimum Wage (NMW) to increase from R30.23 to at least R33.00 per hour from 1 March 2027.
FEDUSA made the call in its submission to the National Minimum Wage Commission as part of the 2027 NMW review process.
The proposed increase represents approximately 9.2%, or R2.77 more per hour, and would raise the monthly earnings of a worker working a 40-hour week to approximately R5,720 before deductions.
FEDUSA says the proposed increase must be understood as a necessary transitional step towards a living wage, rather than the achievement of a living wage.
The NMW is a floor, not a living wage
FEDUSA maintains that the statutory minimum wage cannot be treated as an adequate measure of what workers need to live with dignity.
Research from the University of Cape Town places a national living-wage benchmark at approximately R10,000–R11,000 per month, while demonstrating significant differences across provinces. FEDUSA does not regard this figure as a guarantee of a good quality of life. Rather, it should be understood as an important benchmark and a floor from which workers can begin to improve their quality of life and move towards a more dignified standard of living.
This distinction is critical. A statutory minimum wage establishes the lowest lawful wage, but a living wage asks a different question: what level of income is necessary for workers and their families to live with dignity and progressively improve their standard of living?
The gap between the statutory minimum and the cost of meeting basic needs is further illustrated by household affordability data. The Pietermaritzburg Economic Justice & Dignity Group (PMBEJD) reported an average household food basket of R5,479.80 in August 2026, while its basic nutritional food basket stood at R6,597.25.
For a worker earning the current NMW, these figures demonstrate how little income remains once basic necessities are taken into account.
For FEDUSA, this is why South Africa needs a deliberate, credible and progressive pathway from the minimum wage towards a living wage.
“A minimum wage must not become a maximum wage. Employment must provide a pathway out of poverty, not simply a legal relationship between an employer and an employee.”
Workers continue to face significant cost pressures
The case for an increase must also be considered against the continuing cost pressures faced by low-paid workers.
Statistics South Africa reported headline inflation of 4.3% in July 2026, while transport inflation stood at 8.9%. Electricity tariffs also increased by 8.1% in 2026.
FEDUSA says these pressures cannot be viewed in isolation from wages.
For workers at the bottom of the income distribution, increases in transport, electricity, food and other essential costs have a disproportionate impact because a significant share of their income is already committed to basic household necessities.
When wages rise more slowly than the cost of maintaining a household, workers can remain employed while still living in poverty.
That is precisely the problem a progressive wage policy must confront.
FEDUSA recognises the employment challenge
FEDUSA recognises South Africa’s severe unemployment challenge, with the official unemployment rate standing at 33.6% in the second quarter of 2026.
However, the federation says unemployment cannot be used to justify keeping employed workers trapped in working poverty.
The choice cannot be between employment and dignity. South Africa needs both.
FEDUSA supports a balanced and phased approach that raises wages while recognising the need to address productivity, enterprise sustainability, skills development and the particular pressures faced by vulnerable small, medium and micro enterprises (SMMEs).
The federation therefore supports measures that can help businesses adjust while ensuring that the burden of economic adjustment does not fall disproportionately on the lowest-paid workers.
From a wage floor to a living-wage pathway
FEDUSA’s position is not simply about increasing the NMW each year.
It is about establishing a credible multi-year pathway towards a living wage, supported by evidence, collective bargaining, stronger enforcement and appropriate economic measures.
The federation’s submission calls for:
an NMW of at least R33.00 per hour from 1 March 2027;
annual adjustments that protect workers’ purchasing power;
credible and evidence-based living-wage benchmarks;
stronger collective bargaining;
targeted support for vulnerable SMMEs;
stronger enforcement of the NMW; and
a transparent, evidence-based approach to future wage adjustments.
FEDUSA believes that R33 per hour is a responsible transitional step towards closing the gap between the statutory minimum and a living wage.
It is not the end point.
It is a step towards ensuring that work provides workers and their families with greater economic security, dignity and a realistic opportunity to improve their standard of living.
“This is not simply about numbers. It is about whether work provides people with dignity, security and a realistic pathway out of poverty.”
ENDS
Media enquiries:
Betty Moleya
FEDUSA Media and Communications
063 736 5533
For interviews:
Riefdah Ajam
FEDUSA General Secretary
079 696 2625
Ashley Benjamin
FEDUSA Deputy General Secretary
083 258 4433