The tourism and hospitality sector in South Africa is a large one and continues to grow on a yearly basis. It is a significant contributor to the country’s GDP and as a labour-intensive industry, is responsible for the creation of thousands of jobs. Research has shown that tourism supports one in every 12 jobs in South Africa.
While the 2010 FIFA Soccer World Cup had mainly positive ripple effects on the tourism industry in South Africa, in recent years, the sector has slowed down slightly, due to a range of factors. Government understands the value of this sector to the country’s economic growth prospects and aims to capitalise on the weaker Rand as a way of attracting tourists to South Africa.
Government aims to increase tourism’s contribution to R499 billion by 2020. The good news is that the sector is poised for growth over the next five years.
Currently regulated by the Federated Hospitality Association of Southern Africa (Fedhasa), minimum wages for the hospitality sector were recently introduced.
New minimum wages for the hospitality sector came into effect on 1 July.
More about new minimum wages for the hospitality sector:
The new minimum wage is applicable until June 30 2017.
The wage increases are always determined by the Consumer Price Index (CPI) reported by Statistics SA.
For a 45 hour week, minimum wage per month was R3076.98. Additional items raised include:
Prescribed night transport compensation, fully compensated maternity leave as well as added paid days off for family responsibility leave.
Following the 7.2% increase on the minimum wage, employers with 10 or less employees earn a monthly wage of 2959.35. Weekly wages are R682.97 and hourly rates are R15.17.
For hospitality sector employers with 10 or more employees, the monthly wage rate is now R3298.52. The weekly wage rate is R761.25. The hourly rate is R16.91.