THE NATIONAL MINIMUM WAGE BILL IS NOW LAW / DIE NASIONALE MINIMUM
LOONWET IS NOU IN WERKING
On 23 November 2018, the president, Cyril Ramaphosa, assented to and signed into law
the National Minimum Wage Bill bringing into force the National Minimum Wage Act 9 of
2018. The Act provides for a national minimum wage and deals with all issues surrounding
the introduction of a national minimum wage, and establishes a National Minimum Wage
Commission. /
The preamble to the Act states that the Act is as a result of the recognition that the RSA is
one of the most unequal societies in the world and that there are huge disparities in
income in the national labour market. It further states that it aims to eradicate poverty and
inequality and to promote fair and effective competition and stability in the labour market,
and is also as a result of the constitutional obligation on the State of employers to promote
and fulfil the right to fair labour practices./
The Act prescribes a national minimum wage of R20 per hour worked, with the exception
of section 174 which excludes farm workers, domestic workers, workers employed on an
expanded public works programme and workers who have concluded learnerships
contemplated in the Skills Development Act 97 of 1998. /
1. In which PESTE environment does this change take place? /
(1)
2. On which other two PESTE environments does it have an influence? Explain
your answer.

3. How can it influence a business' internal environment? Discuss the influence
on two business functions.
(4)
4. Which opportunity do you think can be utilised in this change?