How Do I Understand the Calculation of Remuneration and Wages for my Employees?

Although an Employee’s remuneration is something that can be negotiated between Employer and Employee, depending on the sector, there are some minimum wages that all Employers’ should abide by. The National minimum wage and the lowest hourly rate for any employee to earn is set at R23.19 per hour.
If you are working on a certain minimum wage (hourly Rate) and would like to establish what the monthly remuneration would amount to, you can use the below format:
Rate per hour * hours a day required to work = Day Rate
Day rate * Days per week required to work = Week wage
Week wage * 4.33 = Monthly Wage
If you have the monthly wage and would like to ensure that you are paying the required minimum wage, you will use the below format:
Monthly wage / 4.33 = Weekly wage
Weekly wage / days a week required to work= Daily wage
Daily wage / Hours a day required to work = Hourly rate.
Once you have established the Employee’s hourly rate, you will be able to calculate any overtime, Saturday, Sunday and/or public holiday payment rates.
If an Employee’s normal working hours are from Monday to Friday and you require them to work over a weekend, such hours should be paid at a different rate in.
If an Employee’s normal working hours are scheduled from Mondays to Sundays, they will earn their normal rate on a Saturday and 1.5 times their normal rate for the hours worked on a Sunday. Should an Employee be required to work on a public holiday, such hours would be paid at double their normal hourly rate, regardless of the day the public holiday falls on and/or normal working hours.
Employees should be paid in South African currency, on a daily, weekly, or monthly basis. Payment can be made in cash, by cheque or by direct deposit into an account of the Employee’s choosing. Payment that is made in cash or by cheque should be provided to the employee during working hours, or within 15 minutes of commencement or conclusion of those hours and must be in a sealed envelope.
All outstanding payments due to the Employee should be paid to the Employee no later than seven days after the completion of the pay period for which the remuneration is payable, or the termination of the employment relationship. It is important to note that the aforementioned seven day period does not apply to any pension or provident fund payments due to an employee.
For more information contact 021 919 6418 OR erin@joblaw.co.za

Leave a Reply