Deputy President Cyril Ramaphosa announced in Parliament on Tuesday afternoon that the new national minimum wage is to take effect in May 2018.
Its between R3500 and R3900 a month for a 40 hour to 45 hour working week.
Ramaphosa said they had been negotiating the minimum wage for 2 years in response to wage inequality and chaotic labour protests in the country.
He emphasised that the minimum wage is not a living wage but a wage designed to lift the 6.6 million workers earning below R3500 per month to a level that will improve their situation without impacting on employment.
Ramaphosa said the new minimum wage will be overseen by a commission which will be made up of three representatives from business, labour and community-based organisations. It will include four independent experts.
The wage will be adjusted on an annual basis and will be regularly reviewed.
Ramaphosa said businesses that cannot afford to pay the minimum wage must apply for exemption which, if accepted, will last for a year.
Fragile sectors having difficulty complying will also receive assistance. They will not be allowed to reduce working hours or retrench workers.
