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
Merger thresholds in Swaziland and Tanzania – absence of a local Nexus?
It is standard practice for competition regulators, empowered by legislation to monitor and evaluate mergers, to set minimum financial or [...]
.africa domain is here
The long awaited .AFRICA domain name extension will be available as of 3 April 2017 and will be managed by [...]
The National Minimum Wage: a further update
On 8 February 2017, Cyril Ramaphosa, the Deputy President of South Africa, disclosed preliminary details regarding the implementation of a [...]
Mirror, mirror on the wall, who’s the fairest of them all? Most favoured nation clauses from a Competition Law perspective.
Most favoured nation ("MFN") clauses, also known as price parity clauses or most favoured customer clauses, which appear in vertical [...]
Significant changes to government/parastatal procurement regulations promote Broad Based Black Economic Empowerment
New regulations in terms of the Preferential Procurement Policy Framework Act ("PPPFA") have been published and will take effect from [...]
Judging a book by its cover price – apple and the great e-book swindle
INTRODUCTION No one can deny that since Apple launched its first iPod in October 2001, the company has seen [...]
