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
SECTION 198A(3)(B) DEEMING PROVISION: LIABILITY FOR THE CLIENT EMPLOYER REGARDLESS OF THE ROLE THAT THE EMPLOYER STILL RETAINS
By Jacques van Wyk, Director; Andre van Heerden, Senior Associate; and Chelsea Roux, Candidate Attorney ISSUE In the case of [...]
PARENTAL LEAVE BENEFITS: NEW REGULATIONS TO THE UNEMPLOYMENT INSURANCE ACT 63 OF 2001
By Jacques van Wyk, Director; Andre van Heerden, Senior Associate; and Chelsea Roux, Candidate Attorney On 4 November 2019 the [...]
RESIGNATION WITH IMMEDIATE EFFECT – A TALE OF CONFUSION
By Sandile Tom, Director and Dale Adams, Candidate Attorney It is trite law that certain prescribed periods of notice become [...]
DISMISSED FOR NOT ACCEPTING AN EMPLOYER’S DEMAND – WHEN IS THIS AUTOMATICALLY UNFAIR?
By Bradley Workman-Davies, Director The Labour Relations Act, 66 of 1995 ("LRA"), which generally protects employees in South Africa against [...]
CONDUCT OF FINANCIAL INSTITUTIONS BILL
By Tracy-Lee Janse van Rensburg, Director and Reuben Lebelo, Candidate Attorney Following on the Financial Sector Regulation Act, 2017 ("FSR Act"), [...]
WERKSMANS TAX BRIEF
By Ernest Mazansky, Head of Tax Practice, Werksmans Attorneys TAX AMENDMENTS 2019 The Rates and Monetary Amounts and Amendment of [...]
