Finance · South Africa
South Africa raises minimum wage by 5%, easing pressure on workers
Moneyweb · 2026/02/04
Summary
The South African government has announced a 5% increase in the hourly minimum wage, raising it to R30.23 starting next month. This rise is higher than many expected and aims to help low-income workers earn more to cover basic living costs. The increase affects workers who rely on the minimum wage and is part of ongoing efforts to improve workers' financial well-being across the country. While a 5% increase may not fully offset rising prices, it is a positive step towards supporting the working poor. Businesses will need to adjust their budgets to accommodate the higher wage costs, but it could also boost consumer spending as workers have more money to spend on essentials.
OnABudget takeaway: For consumers earning minimum wage, this increase offers a better chance to afford daily needs. Small business owners should plan for slightly higher labor costs but may benefit from increased local spending.