Land and Labour, AgriSA
On 4 February 2025, the Minister of Labour published the adjusted national minimum wage (NMW) rates in the Government Gazette. The increase from R27,58 to R28,79 is a 4,4% increase for each ordinary hour worked by farm workers, effective 1 March 2025.
The 2025 NMW 4,4% adjustment is substantially less than the 8,5% adjustment implemented in 2024, and this decision reflects the complex economic landscape currently faced by the agricultural sector in South Africa.
AgriSA recognises that the National Minimum Wage Commission strives to take a balanced approach in its decision-making process. The increase aims to safeguard the livelihoods of farm workers, while also considering the long-term sustainability and competitiveness of the agricultural sector, which plays a crucial role in the South African economy. With approximately 935 000 people employed in agriculture, fair wages and the industry’s viability must be supported, particularly in rural areas where job creation is vital.
The timing of the wage increase is significant as the agricultural sector is currently grappling with numerous challenges, including a contraction of around 5% in gross domestic product (GDP) for 2024. Recent disruptive weather patterns have led to severe drought conditions across many farming regions, placing considerable strain on producers and threatening profit margins over the short term. However, the Bureau for Food and Agricultural Policy (BFAP) has indicated that assuming a return to more normal rainfall patterns, overall agricultural GDP could see a recovery with an expected growth of 3,5% in 2025.
Despite the immediate challenges, AgriSA remains steadfast in its commitment to fostering a sustainable agricultural landscape in South Africa. By enhancing job creation initiatives and advocating for policies that support workers and employers, it is possible to cultivate a thriving agricultural sector that benefits all stakeholders.
This information is published with permission of AgriSA.
