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
No grout about it: The LAC cements section 197 principles
by Bradley Workman-Davies, Director Section 197 of the Labour Relations Act has long been one of the most misunderstood and [...]
Making sense of death: A brief overview of inquest proceedings
by Dakalo Singo, Director and Head of Pro Bono By its very nature, death is tragic. The death of a [...]
Is cryptocurrency ‘capital’? Taking the Mangundhla judgment under the loop
by Deon Griessel, Director 1. Introduction Two Gauteng Division judgements have reached diametrically opposite conclusions on the question as to [...]
Agonists and APIs: High Court Injects Clarity into Compounding Debate
by Neil Kirby, Director and Head of Healthcare & Life Sciences and Slade van Rooyen, Associate The practice of compounding [...]
Minority shareholders and disposals of “controlling interests”: The limits of Section 11 of the MPRDA
by Chris Stevens, Director and Head of Mining & Resources, Kyra South, Director and Sandile Shongwe, Senior Associate Given that [...]
Constitutional subsidiarity: An important clarification
by Dakalo Singo, Director and Head of Pro Bono Constitutional subsidiarity is an important principle of South African law. While [...]
