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 fascinating tango of interest and forex rates on large claims where set-off occurs: a case study
Imagine the following scenario, the parties have litigated, and they are awarded the following claims: Party A is awarded: US$5 [...]
Memorandum of understanding concluded between the Broad Based Black Economic Empowerment (“BBBEE”) Commission and the Competition Commission – the increasingly important interface between BBBEE and Competition Law
) The Competition Commission investigates certain mergers and anticompetitive practices including cartel conduct (for example price fixing, collusive tendering and [...]
Use it or you may lose it
INTRODUCTION In Legalwerks September 2017, the top ten reasons to register trade marks were discussed, https://werksmans.com/legal-briefs-view/top-ten-reasons-to-register-your-trade-marks/. On payment of renewal [...]
FAQ – opportunities for investors arising from the South African business rescue process
INTRODUCTION The South African business rescue process has created the opportunity for investors (local and foreign) to position themselves in [...]
2018/2019 budget proposals – Tax overview
By: The Werksmans Tax Team INTRODUCTION Despite it being widely expected that this year's Budget would add to the ever-increasing [...]
STATE OF THE NATION ADDRESS
The National Land Audit has recently been made public. This report was primarily phase 2 of a Land Audit that [...]
