PROTECTION AGAINST JOB LOSSES
Minimum wage exemption relief on the cards
Businesses unable to afford the national minimum wage will be allowed to apply for exemption for up to 12 months
Mitigating measures are planned to assist businesses that cannot afford the R20 per hour national minimum wage when it comes into force no later than May 1 2018, says Deputy President Cyril Ramaphosa. Such businesses could apply for an exemption for up to 12 months. The aim would be to avoid job losses and plant closures, Ramaphosa said at a media briefing on Wednesday. "Any fragile sectors that are having difficulty in complying with the national minimum wage will be considered for assistance within the available means, including through incentives," he said. An employment tax incentive, expanded support for small and medium enterprises, as well as sectoral-specific tax incentives were envisaged, the deputy president said. During the two-year lead-in time after May 1 2018 domestic and farm workers can be paid up to 75% and 90% respectively of the national minimum wage. Ramaphosa’s briefing was held to mark the signing of agreements on labour stability and the national minimum wage ...
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