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 implication of the amendments to the Financial Intelligence Centre Act, 38 of 2001
With effect from 19 December 2022, the list of "accountable institutions", as contained in Schedule 1 to the Financial [...]
Trust transparency as a means to combat money laundering: what should trustees know
by Benedict Ngobeni, Candidate Attorney Concerns around money laundering and other illicit financial activities have been gaining traction over [...]
Play it again (and again): A new regime for complementary medicines
The Minister of Health has published certain amendments to the General Regulations ("the Regulations") made in terms of the [...]
Information Regulator bites! Enforcement Notice issued against the SAPS
It was with great shock that the South African society learned about the rape of several women near Krugersdorp [...]
The South African Reserve Bank announces South Africa’s first Deposit Insurance Body
and Siphosethu Zazela, Candidate Attorney The South African Reserve Bank (SARB) announced the establishment of the Corporation for Deposit Insurance (CODI) [...]
Food-focused Market Inquiry Lift Off! The Commission officially launches Fresh Produce Market Inquiry
The Competition Commission ("Commission") has today, 23 March 2023, formally launched the Fresh Produce Market Inquiry (“FPMI”), following the publication [...]
