What is
Wages?
Wages are pay calculated by the hour or day, as opposed to a fixed monthly salary. Here's what the distinction means in South Africa and how both are taxed and protected under the BCEA.
What is wages?
Wages are pay calculated by the hour or day, as opposed to a fixed monthly salary. They vary each pay period with hours worked and are governed by the Basic Conditions of Employment Act. The National Minimum Wage floor is R30.23 per hour in South Africa from 1 March 2026.
✓ Fact-checkedUpdated 1 May 2026Sources: Basic Conditions of Employment Act·SARS 2026/27
Key takeaways
- ✓Wages are pay calculated by the hour or day — they vary each pay period depending on hours worked.
- ✓Unlike a fixed salary, overtime on wages is mandatory under the BCEA: 1.5× on weekdays, 2× on Sundays and public holidays.
- ✓The National Minimum Wage sets the floor at R30.23/hour from 1 March 2026 — no employer may pay less.
- ✓Domestic workers and farm workers are covered under the same NMW rate as all other workers since 2023.
Definition
Wages are variable payments for work done — typically calculated hourly, daily, or per piece of output. More hours worked means more pay.
Wages vs salary — key differences
| Feature | Wages | Salary |
|---|---|---|
| Calculation | Hourly / daily / piece-rate | Fixed monthly amount |
| Variability | Changes with hours worked | Same each month |
| Overtime | 1.5× weekday, 2× Sunday / PH | Often included; depends on earnings level |
| Typical workers | Factory, construction, domestic, retail | Office, management, professional |
| PAYE tax | Yes — same rates as salary | Yes — same rates |
| Minimum wage | R30.23/hr (March 2026) | Equivalent minimum applies |
Data: BCEA s35 — Remuneration · National Minimum Wage Act 9 of 2018 · See methodology
Frequently asked questions
What is the definition of wages?
Wages are payments made to an employee for work done, typically calculated on an hourly, daily, or piece-rate basis. The term 'wages' is often used for manual, trade, or hourly workers — as opposed to 'salary', which implies a fixed monthly payment regardless of exact hours worked.
What is the difference between wages and a salary?
The main difference is how pay is calculated. Wages are variable — if you work more hours, you earn more; if you work fewer (or miss a shift), you earn less. A salary is fixed — you receive the same amount each month regardless of minor variations in hours. In South African law, both salaried employees and wage earners are protected by the Basic Conditions of Employment Act (BCEA).
Are wages and salary taxed the same way?
Yes. Both wages and salary are subject to PAYE (Pay As You Earn) income tax in South Africa. SARS makes no distinction between the two — both are taxed at the same progressive rates. The employer must deduct PAYE and pay it to SARS on the employee's behalf, regardless of whether the employee earns a wage or a salary.
What is the minimum wage in South Africa?
The national minimum wage (NMW) in South Africa is R30.23 per ordinary hour worked from 1 March 2026. This applies to all workers — whether paid on a wage (hourly) or salary (monthly) basis. At a 40-hour working week, this equates to approximately R5,250/month.
Do wage earners get overtime pay?
Yes. Under the Basic Conditions of Employment Act (BCEA), employees who work overtime are entitled to 1.5× their normal hourly rate for overtime on weekdays (above 45 hours/week or 9 hours/day), and 2× their normal rate for work on Sundays and public holidays. This applies to wage earners and, in many cases, salaried employees earning below the BCEA earnings threshold (currently R254,371/year).
Calculate take-home from any wage or salary
Enter your gross monthly earnings to see PAYE, UIF, and net pay.
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