Legal updates and opinions
News / News
Earnings threshold increase for 2022
Annual earnings threshold increase for 2022
The Basic Conditions of Employment Act 75 of 1997 (“BCEA“) empowers the Minister of Employment and Labour to make determinations, from time to time, regarding an earnings threshold.
The effect of such determinations is that employees earning in excess of the threshold amount stipulated in the determination are excluded from relying on numerous protections in the BCEA.
On the other hand, employees earning below the earnings threshold enjoy protections in the BCEA relating to the regulation of ordinary hours of work, overtime, compressed working weeks, averaging of hours of work, meal intervals, daily and weekly rest periods, pay for work on Sundays, pay for night work and public holidays.
They also enjoy some protections in the Labour Relations Act 66 of 1995 relating to the regulation of non-standard employment (for example: employees who work for the client of a temporary employment service or labour broker; and employees who are employed on fixed-term contracts). Additionally, employees or workers earning below the threshold amount may refer claims for non-payment in terms of section 73A of the BCEA to the CCMA.
With effect from 1 March 2022, the earnings threshold has been increased by the Minister to R224 080.48 per annum (which amounts to R18 673.37 per month).
Before this increase, the previous earnings threshold was R211 596.30 (or R17 633.03 per month).
It is important to note that the word “earnings” as it applies in this context means an employee’s regular annual remuneration before deductions (such as income tax, contributions to a pension/provident fund and/or medical aid scheme and similar payments), but excludes similar contributions made by the employer in respect of the employee. Further exclusions in this regard include subsistence and travel allowances, achievement awards and overtime.
Latest News
The Regulator is Watching: New Enforcement Signals for POPIA and PAIA Compliance
by Ahmore Burger-Smidt, Director and Head of Regulatory, Armand Swart, Director and Hlonelwa Lutuli, Associate. The Information Regulator (Regulator) has [...]
Are your employees’ wearables creating a new governance blind spot?
by Tebogo Sibidla, Director Over the past decade, organisations have invested heavily in securing workplace technology. Laptops, smartphones, cloud applications [...]
Interviewing for survival: When competitive interviews during retrenchment are fair
by Bradley Workman-Davies, Director Employers undertaking restructuring exercises are frequently faced with a practical dilemma: where the new organisational structure [...]
Reinstated today, retrenched tomorrow? The limits of redundancy as a defence to reinstatement
by Bradley Workman-Davies, Director Reinstatement has long been recognised as the primary remedy for substantively unfair dismissal under the Labour [...]
Bad process doesn’t make a good dismissal bad: LAC draws a clear line between procedure and substance
by Bradley Workman-Davies, Director South African labour law has long recognised that a dismissal can fail for one of two [...]
Think before you prompt: How employee use of AI can shape your organisation’s legal position before lawyers become involved
by Tebogo Sibidla, Director The legal lifecycle begins long before a dispute reaches court, or a regulator commences an investigation. [...]
