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 meaning of a hearing DE NOVO in arbitration proceedings
Section 138 of the Labour Relations Act 66 of 1995 accords the commissioner’s discretion to determine the matter and form [...]
The provision of transport for employees working overtime beyond 18h00
Summary The performance of night work is regulated to, among others, avoid or minimise an employee’s health risks, including the [...]
Consequences of late/non-filing of employment equity reports
In terms of the EEA, designated employers are obliged to submit an Employment Equity Report (“EER”) to the Director-General of [...]
May an employer take on the right to alter a chairperson’s decision in a disciplinary hearing?
May an employer overturn the decision of a chairperson of a disciplinary hearing if it believes the chairperson’s sanction was [...]
Admission of video recordings as evidence in arbitration proceedings
In terms of section 138(1) of the Labour Relations Act 66 of 1995 (as amended) (“the LRA”) a “commissioner may conduct the [...]
Life after Sidumo: clarifying the review test
Sidumo v Rustenburg Platinum Mines Ltd & Others [2007] 12 BLLR 1097 (CC) is a landmark case in South African labour law, [...]
