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
Reviewing an arbitrator’s misconception of the nature of an enquiry
By Jacques van Wyk, Director and Yusha Davidson, Candidate Attorney ISSUE Whether, by finding that the employer should have followed [...]
Is an unfair dismissal claim subject to prescription? If so, does the referral of a dispute to the ccma for conciliation interrupt the running of prescription?
By Jacques van Wyk, Director and Yusha Davidson, Candidate Attorney ISSUE Are claims for unfair dismissal subject to the Prescription [...]
The definition of “worker” in the national minimum wage bill
By: Jacques van Wyk, Director and Andre Van Heerden, Senior Associate and Yusha Davidson, Candidate Attorney The Department of Labour has [...]
Regulations on national minimum wage exemptions
By: Jacques van Wyk, Director and Andre Van Heerden, Senior Associate and Yusha Davidson, Candidate Attorney The National Minimum Wage Bill [...]
The right to a fair hearing trumps the contract of employment
By: Jacques van Wyk, Director and Andre Van Heerden, Senior Associate and Yusha Davidson, Candidate Attorney ISSUE Can an employee be [...]
Automatically unfair dismissals versus legitimate dismissals for operational requirements: the importance of the ‘true reasons’ for the dismissal
By: Jacques van Wyk, Director, Andre van Heerden, Senior Associate and, Unathi Jukuda, Candidate Attorney ISSUE Whether, in dismissing employees, the [...]
