The wine-producing Western Cape region had suffered a huge drawback after farmers protested poor wages and demanded an increase.
Minister Mildred Oliphant said the new minimum wage would be $12 up from $8 but less than the $17 which the workers had demanded.
At least one person was killed during January's two-week strike in the South African vineyards.
The strike was suspended after the government promised a wage review, a promise it has kept and honoured.
Most of the Western Cape's 3,000 farm workers are not employed on a permanent basis - despite working on the farms for many years.
They work seasonally to pick and pack fruit and said they could no longer survive on their previous wages.
Police used rubber bullets and tear gas to disperse protesters and end the last month’s protests when striking workers blockaded roads and burnt the cars of journalists.
An owner of a small shop was killed, allegedly by police, after being caught in the crossfire in the town of De Doorns, a top grape-producing area in the Western Cape.
Two people were also killed in a similar strike last year and $11 million worth of damage was caused when some vineyards were set alight.
By Koome Kimonye