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
A bank’s choice of forum – what does the law say?
Setting the Scene It is common practice for consumers to take up mortgages and purchase motor vehicles on credit from [...]
Draft standards on address data published for public comment
Draft standards on address data 1. The Protection of Personal Information Act 4 of 2013 ("POPIA") has a wide application [...]
Treasury modifies the interest limitation proposals
Proposed interest limitation rules In 2019 Treasury released a discussion document dealing with the proposed interest limitation rules that would [...]
Business rescue and employee rights
What happens to employees when their employer is placed into business rescue? What happens to employees when their employer is [...]
Basics of Business Rescue
What is business rescue? Business rescue proceedings are proceedings aimed to facilitate the rehabilitation of a company that is financially [...]
The cost of speaking ill of the Competition Commission
Proceedings before the Competition Commission Litigation is, by its very nature, adversarial and in consequence, litigants are sometimes prone to [...]
