SOUTHERN CAPE NEWS - The only basis on which an employer is allowed to submit an application for exemption from the new national minimum wage is affordability.

Speaking at a Labour Department information session for employers in George, the department's deputy director of employment standards, Mathilda Bergmann said anyone can apply, from commercial employers to private households.

The new per hour minimum wage is R20 in the commercial sector, R18 for farm workers, R15 for house workers and R11 for EPWP workers. Workers in learnerships will earn according to the departmental determination for their sector.

"Affordability, solvency and liquidity are the only reasons why an employer can apply for exemption. An applicant will receive an immediate answer. If exemption is granted, the department issues a certificate to the employer."

Applicants must supply financial statements for three years - two years' financials and a projection for the coming book year.

Application is done online and the system is linked to the South African Revenue Services (Sars), Unemployment Insurance Fund, and the Department of Trade and Industry. 

If discrepancies are picked up in an application, the employer can be subjected to an audit by Sars.

"The process does not make provision for the applicant to appeal the outcome and they will have to revert to a court of law if they wish to appeal. The department reserves the right to withdraw approval and the certificate at any time," said Bergmann.

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