The minimum wage in the hospitality sector has been increased from 1 July 2014. The new wage adjustments will be applicable until 30 June 2015. The Labour Department explained that in terms of the sectoral determination – which prescribes minimum wage rates and conditions of employment in the sector – the new rate increases are demarcated into two categories.
- For employers with 10 or less employees, the new minimum monthly rates will increase from R2415.86 (2013/14) to R2601.88 in (2014/15).
- Weekly rates will increase from R557.55 (2013/14) to R600.48 (2014/15), while hourly rates will be adjusted from R12.39 in (2013/14) to R13.34 in (2014/15).
- The minimum wages for employers with more than 10 employees, the minimum monthly rates will increase from R2692.74 (2013/14) to R2900.08 in (2014/15); weekly rates will increase from R621.45 (2013/14) to R669.30 (2014/15) and hourly rates will be adjusted from R13.81 in (2013/14) to R14.87 in (2014/15),” the department said.
The hospitality sector covers any commercial business or part of a commercial business in which employers and workers are associated for the purpose of carrying on or conducting one or more activities for reward.
Among these include those that provide accommodation and/or prepare, serve or provide prepared food or liquid refreshments, drinks other than in sealed bottles or cans whether indoors or outdoors or in the open air, for consumption on or off the premises in a hotel, motel, inn, resort, game lodge, hostel, guest house, guest farm or bed and breakfast establishment.
It also includes short stay accommodation, self-catering, time shares, camps, caravan parks, restaurants, pubs, taverns, cafés, tearooms, coffee shops, fast food outlets, snack bars, industrial or commercial caterers, function caterers, contract caterers and includes all activities or operations incidental to or subsequent on any of the activities mentioned above.
The hospitality sector excludes workers and employers involved in the trade of letting of flats, rooms and/or houses. It also excludes all workers and employers covered by another sectoral determination in terms of the Basic Conditions of Employment Act. It further excludes areas that are covered by a statutory council or a bargaining council.
According to the department, the current wage increases have been determined by using the consumer price index of 6.2% (excluding owners’ equivalent rent) reported by Stats SA on the 23 April 2014.
“The minimum wage increases are therefore determined by adding 6.2% plus 1.5%, as stated in the current sectoral determination. The total increase is 7.7%,” the department said.