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
Use it or lose it!
By Janine Hollesen, Head of Intellectual Property Practice It is important that a trade mark is used as non-use could [...]
How long is too long? Suspension of an employee pending a disciplinary process
By Bradley Workman-Davies, Director and Mishkah Abdool Sattar, Candidate Attorney Very often, an employee is suspended while an investigation is [...]
Mining charter 2018 – key elements in the implementation guidelines
By Chris Stevens, Head of Mining & Resources Practice, Kathleen Louw, Director and Bronwyn Parker, Senior Associate INTRODUCTION The Mining [...]
Court victory enables asylum seekers to claim unemployment benefits
By: The Werksmans Pro Bono Team For many years, asylum seekers attempting to claim benefits from the Unemployment Insurance Fund (UIF) [...]
Fixed term contracts – how are they justified?
The use of fixed term contracts of employment appeals to employers for a number of reasons, some of which are [...]
A dismissal arising out of a failure to work overtime for religious reasons may be found to be automatically unfair
By: Jacques van Wyk, Director; Andre van Heerden, Senior Associate and Chelsea Roux, Candidate Attorney ISSUE Whether the dismissal of [...]
