This report examines the short-term labour market effects of the March 2024 increase in the National Minimum Wage (NMW), which was the largest adjustment in real terms since the introduction of the NMW in 2019. In recent years, increases in the level of the minimum wage have outpaced average wage growth, such that the NMW is now set at almost 80 percent of the country’s median wage– above average by international standards. This trend, combined with the broader challenges facing South Africa’s labour market, are critical to understanding the implications of the latest NMW adjustment.