Mixed reactions as national minimum wage increases to R30.23

The government has increased the national minimum wage from R28.79 per hour to R30.23 per hour, effective from 01 March 2026. The increase has been met with mixed reactions in the agriculture sector.

Employment and labour minister Nomakhosazana Meth said the R1.44 upward move will benefit all workers, including vulnerable farmworkers and domestic workers.

“The 1^st of March 2026 is the date on which this amendment shall become binding. The national minimum wage is the floor which an employer is legally obligated to remunerate employees for work done. No employee shall be paid below the national minimum wage,” she said.

Do or die for employers

The national minimum wage is enforced by the labour department and Commission for Conciliation Mediation and Arbitration (CCMA). Meth said any violations of the act are subject to fines enforced by the inspectorate.

Meanwhile, AgriSA said the announcement came at a time of uncertainty for South African agriculture, as the sector is experiencing real and measurable economic losses arising from the ongoing foot-and-mouth disease (FMD) outbreak and biosecurity challenges.

Chief executive officer of Agri SA, Johann Kotzé, said the timing of the adjustment would put additional pressure on a sector already under strain.

“Agriculture is emerging from consecutive years of contraction caused by drought, climate volatility, and animal disease outbreaks. While parts of the sector are showing recovery in 2025, this recovery remains fragile and uneven. Labour-intensive subsectors, emerging farmers, and export-oriented value chains are particularly exposed.

“AgriSA has consistently emphasised that wage policy must be sector-responsive and implementation-aware, particularly in periods of systemic risk such as the current FMD crisis,” he said.

Kotzé said while the organisation engaged constructively throughout the national minimum wage review process, it remains concerned that above-inflation adjustments implemented during a period of animal health emergency may place additional strain on jobs, farm viability, and rural economies.

Could lead to job losses

“AgriSA calls for parallel action by the relevant state authorities to stabilise the agricultural operating environment, including strengthened animal health and biosecurity systems, accelerated resolution of export market restrictions, improved port and logistics performance, and relief from administered input costs, such as electricity.

“Without these interventions, wage adjustments alone risk weakening employment sustainability, accelerating unemployment rather than improving worker welfare,” he said.

In its 2026 outlook report, AgriSA stated that it supports decent work conditions and fair wages, but emphasised that wage-setting must reflect economic capacity, productivity, and sectoral realities.

“Agriculture remains a critical source of rural employment, yet it is highly sensitive to cost shocks. Labour is a major cost component, especially in horticulture and export-oriented value chains.

“Evidence from AgriSA surveys indicates that previous minimum wage increases have contributed to job losses, reduced working hours and accelerated mechanisation,” AgriSA said.

A poultry farmer from Warrenton in the Northern Cape, Nqobile Khumalo, said it is possible to pay farmworkers the minimum wage; however, it would depend on the scale of the operations.

“It is possible for an emerging farmer like myself, however, what will be great is that the value chain will be able to absorb these changes. Government must come to the party and create much-needed projects or opportunities that we can also play into so that we can be able to pay a decent wage.

“Without market access, there is no business, without business, there is no income, without income, there are no salaries, so the entire value chain must complement each other,” she said.