Legislative changes to the minimum wage in 2024
The minimum wage is reviewed annually on 1 January and 1 July, as will be the case on 1 January 2024. Several significant changes regarding the minimum wage are forthcoming. We have outlined these changes and the impact they will have on you.
Changes to the minimum wage and the reasons behind them
From 1 January 2024, the introduction of the statutory minimum hourly wage will take effect. This affects the calculation of the minimum wage. The change is intended to create a fairer remuneration system. Currently, the government sets the minimum wage on a monthly basis. However, this is not entirely equitable as different sectors operate with different working weeks.
Consequently, the minimum hourly wage will be implemented, meaning all employees on the minimum wage will receive the same hourly rate, regardless of the length of their working week. As a result of this change, employees working a 40-hour week will earn more than those working a 36-hour week. This means the hourly rate becomes the basis, rather than the monthly salary.
What does this mean for you as an employee?
Good news! Based on the current minimum wage, an increase of approximately 11.11% is expected for a 40-hour working week, and an increase of approximately 5.06% for a 38-hour working week. The above calculations are based on the minimum wage from July 2023, as the hourly rate for 2024 has not yet been indexed. This means the monthly salary could potentially be even higher!
Calculating the minimum wage from 2024
Since the hourly rate for 2024 has not yet been indexed, it is currently difficult to calculate your minimum wage. However, once this has been determined, you can use the following formula to calculate your minimum wage:
Wage in period X = (number of hours worked in period X) * (statutory minimum hourly wage)
