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
Changes to the tax treatment of trust income awarded to foreign beneficiaries on the horizon
Currently, income that arises in a South African trust which is awarded to a foreign beneficiary during the same [...]
What exactly are the duties and responsibilities of the mining right holder in the retrenchment process in the mining industry?
In Association of Mineworkers & Construction Union v Buffalo Coal Dundee (pty) Ltd & another ("Buffalo Coal"), the Labour [...]
Section 11 of the Mineral and Petroleum Resources Development Act
In terms of section 11(1) of the Mineral and Petroleum Resources Development Act 28 of 2002 ("MPRDA") - "A prospecting [...]
The unrealised transformative potential of preferent community mining rights
and Siphamandla Dhlamini, Candidate Attorney The Mineral and Petroleum Resources Development Act No. 28 of 2002 ("MPRDA") was enacted with [...]
Private companies and the new transparency provisions of the Companies Act
The Companies Act No 71 of 2008 ("Act") was amended on 1 April 2023 with the purpose of increasing corporate [...]
South African Chapter in The Banking Regulation Law Review | 14th Edition
The 2023 edition of the South African Chapter in The Banking Regulation Law Review | 14th Edition guide is out! [...]