Legal updates and opinions
News / News
Increase to BCEA earnings threshold
On 20 February 2023 the Minister of Employment and Labour, Thembelani Waltermade Nxesi, published a Government Gazette providing for the increase of the earnings threshold, as provided for in the Basic Conditions of Employment Act 75 of 1997 (“BCEA”). The increase will be from R224,080.48 per annum to R241,110.59 per annum with effect of 1 March 2023.
The meaning of ‘Earnings’ is set out in the Government Gazette notice as
“the regular annual remuneration before deductions i.e income tax, pension, medical and similar payments but excluding similar payments (contributions) made by the employer in respect of the employee: Provided that subsistence and transport allowances received, achievement awards and payments for overtime worked shall not be regarded as remuneration for the purpose of this notice.”
Employees who earn in excess of the threshold are excluded from certain provisions of the BCEA including ordinary hours of work (section 9), overtime (section 10), compressed working weeks (section 11), averaging hours of work (section 12), meal intervals (section 14), daily and weekly rest periods (section 15), pay for work on Sundays (section 16), pay for night work (section 17(2)) and pay for public holidays where the employee works on a day he/she would not ordinarily work (section 18(3))
Latest News
CCMA digital platforms
By Michiel Heyns, Senior AssociateReviewed by Jacques van Wyk, Director On or about 8 May 2020 the Director of the [...]
COVID-19: Could borrowing base funding mechanisms be the answer for smaller businesses suffering from cash flow shortages?
By Cara Gow, Associate Reviewed by Richard Roothman, Director and Head of the Banking & Finance practice and Tracy-Lee Janse [...]
Urgent update: COVID-19 Temporary Employer / Employee Relief Scheme (“TERS”)
by Jacques van Wyk, Director; Andre van Heerden, Senior Associate; and Thabisa Yantolo, Candidate Attorney The Unemployment Insurance Fund ("UIF") [...]
Retrenchment of employees on fixed-term contracts: How far can you go?
by Sandile July, Director and Nyiko Mathebula, Candidate Attorney Retrenchments are viewed in a bad light due to the very [...]
Retrenchment consultations: the use of video-conferencing
by Jacques van Wyk, Director; Andre van Heerden, Senior Associate; and Thabisa Yantolo, Candidate Attorney Issue Whether an employer may [...]
Directors’ duties and obligations in the business rescue process
Introduction Once a company is placed into a business rescue proceeding, the business rescue practitioners immediately step into a supervisory [...]
