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 Role of the Corporate Doctor – Saving Distressed Companies in South Africa
South African corporates continue to face significant challenges in surviving economic constraints and turmoil in the market place. Looking at [...]
Navigating the termination of conditional offers of employment: What employers need to know
and Yendiswa Sithole – Candidate Attorney Introduction In today's highly competitive employment market, securing the most suitable candidates is of [...]
Employer ordered to pay compensation for failing to adequately investigate sexual harassment complaints
and Hanán Jeppie – Candidate Attorney Introduction An employer's liability in instances where it fails to comply with its statutory [...]
Evidential crossroads: Navigating hearsay evidence in CCMA proceedings
Introduction There is some debate surrounding the extent to which Commissioners are required to apply the general rule against the [...]
Change is inevitable with the evolution of technology
Vision without action is merely a dream. Action without vision just passes the time. Vision with action can change the [...]
Whatever it is, it’s never what you thought it was…. Intersection between privacy and AI
Lwazi-Lwandile Simelane - Candidate Attorney The permeation of artificial intelligence ("AI") into our society as a whole and into our [...]