South Africans will earn no less than R20 an hour from January 1, 2019, when the national minimum wage kicks in.
Making the announcement on Friday, President Cyril Ramaphosa said while government agrees that the amount was not a living wage, he said the country had to start somewhere to lift the earning levels of over six million people who currently earning less than R20 an hour.
He described the introduction of the National Minimum Wage as a great achievement for working people in South Africa who he said had endured decades of exploitation.
"We see the minimum wage as an instrument of economic stimulus," he said.