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
Employment in South Africa – a relationship built on trust
The employment relationship between an employer and its employees is heavily regulated in South African law and there are [...]
Testing the reliability of breathalyser tests
and Nombulelo Bashe, Candidate Attorney Whilst employers regularly rely on the convenience and accessibility of a breathalyser test to determine [...]
Salary made up of commission: What rules apply?
Although South African labour law has a lot to say about minimum terms and conditions of employment, and pieces [...]
Sustainable housing: Navigating the legal landscape for a green and resilient future
One of the first principles recognised in the Paris Agreement[1] is the importance of "sustainable lifestyles and sustainable patterns [...]
Ruling in favour of the Digital Age: Local and foreign courts give a to electronic agreements and signatures
and Karabo Kekana, Candidate Attorney Recently a Canadian court decided that a emoji constituted an electronic signature and resulted in [...]
ESG in Private Equity Funds: Insights from the Super Return Conference 2023
The integration of environmental, social, and governance (ESG) factors has become a crucial consideration for investors across various asset [...]