Restaurants thatexpect their waitstaff to work just for tips will have to pay a minimum wage of R7,59 an hour or R1480 a month from July, Labour Minister Membathisi Mdladlana said yesterday.

Restaurants thatexpect their waitstaff to work just for tips will have to pay a minimum wage of R7,59 an hour or R1480 a month from July, Labour Minister Membathisi Mdladlana said yesterday.

Larger hospitality businesses with more than 10 employees will have to pay a minimum of R8,46 an hour or R1650 a month.

Minimum wage rates for the hospitality industry were published in the Government Gazette yesterday.

Yearly adjust-ments will come into effect every July and will involve increases of the consumer price index plus 2percent.

Mdladlana said that though there are 40430 firms in the hospitality sector employing 568300 people, the sector had no bargaining council. The majority of these workers are employed on a casual basis, making them "very difficult to organise".

This highlights their achievement of finally being able to benefit from a minimum wage, Mdladlana said.

The minimum wage will apply across the country with no distinction between urban and rural areas. Working at night and on Sundays will also be regulated with suitable compensation according to the Basic Conditions of Employment Act.

Though some employers might object to the minimum wage in a sector that is highly competitive, Mdladlana said that the hospitality industry stands to benefit greatly from the increased certainty that a minimum wage will provide. - BuaNews