New minimum wage increase by Monique Ragaval

In October 2018, the long-awaited Private Security prescribed Sectoral Determination 6 increase came into effect for all security officers. This increase was determined by utilizing the consumer price index (CPI) plus 1% as stated in the Sectoral Determination 6 which totalled 6.4%.

Aside from this increase, the National Minimum Wage Act (NMWA) signed by the president on the 23rd November 2018 came into effect on the 1st January 2019. A significant number (approx. 100 000) Security Officers has benefited from this amendment.

According to the latest 2018/2019 report by the Private Security Industry Regulatory Authority (PSIRA), there are currently 2.36 million security officers registered in South Africa – of which over 498,435 are employed by just over 9,000 registered and active security businesses

The increase predominantly influences the wage rate of our M Secure Security officers assigned to sites  in Area 3, as described by the Sectorial Determination 6 .  The wage rate increased by 14%, this implementation will see security officers in Area 3 receive an extra R517 per month. Grade C security officers in Area 3 who used to earn R3,643 will now be paid R4,160.

The Sectorial Determination 6 Lists Area 1 and Area 2 regions together, previous releases list the following as Area 2: Bloemfontein, East London, Kimberley, Klerksdorp, Pietermaritzburg, Somerset West, Stellenbosch and Strand.

Areas 1 & 2

Alberton, Bellville, Benoni, Boksburg, Bloemfontein, Brakpan, Camperdown, Chatsworth, Durban, East London, Germiston, Goodwood, Inanda, Johannesburg, Kempton Park, Kimberley, Klerksdorp, Krugersdorp, Kuils River, Mitchell’s Plain, Nigel, Oberholzer, Paarl, Pietermaritzburg, Pinetown, Port Elizabeth, Pretoria, Randburg, Randfontein, Roodepoort, Sasolburg, Simon’s Town, Somerset West, Springs, Stellenbosch, Strand, The Cape, Uitenhage, Vanderbijlpark, Vereeniging, Westonaria, Wonderboom and Wynberg

Area 3

All other areas

We see in this list that with the Sectoral Determination 6 increase implemented in October 2018 the majority of the M Secure Security Officers would have already been earning at, above or very close to the minimum wage level.

The unfortunate impact of this amendment has seen a rise in business costs for those operating in the industry and businesses utilizing security services. However, the positive impact will see an improvement in the standard of living for Grade C security officers in the rural areas as defined by the Department.

PSIRA has become more stringent, in terms of its regulations, with companies who fail to comply with the security determination which prescribes the remuneration structure of security officers. We’d like to all appeal to all our valued clients and businesses who procure private security services throughout the Eastern Cape to join us in eradicating the non-compliant companies and report them to the local PSIRA Office.

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