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
Contractors, copyright and computer programs – what should business owners know?
by Danelle Plaatjies, and, Monique le Roux, Candidate Attorneys. Reviewed by, Jacques van Wyk, Director and Janine Hollesen, Head of [...]
Keep Calm – We are Coming to the Rescue !!
Business rescue was introduced into our law with the enactment of Chapter 6 of the Companies Act 71 of 2008 [...]
Changes to facilitate joint audits by SARS in the pipeline
by Nicholas Fairbairn, Associate and, Kelly Sease, Candidate Attorney (Reviewed by Doelie Lessing) Cross-border transactions As a result of globalisation [...]
To 2030 and beyond: Can embracing AI technologies help South Africa reach the National Development Plan’s visions for the ICT sector?
Once upon a time, the National Planning Commission published the National Development Plan and set the following long term goals [...]
And we dare to ask again – whose right is it to enforce a director’s fiduciary duties?
by Tandiwe Matshebela, Director and, Koketso Rapoo, Candidate Attorney The Companies Act It goes without saying that a director is [...]
Illegal mining, the ‘zama zamas’ and the Law
Illegal mining is a critical challenge in the South African mining and minerals industry. The South African government previously recognised [...]
