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
South Africa’s Business Rescue regime – firing on all cylinders?
The downturn in world economies has placed business under severe pressure in the last few years. In South Africa, the [...]
Tax amendments – 2016
INTRODUCTION The Taxation Laws Amendment Bill, 2015, the Tax Administration Laws Amendment Bill, 2015 and the Rates and Monetary [...]
The dismissal process
ISSUE When does a dismissal take place and what must be shown to prove that fact? COMMISSIONER'S DECISION [...]
QUO VADIS – business rescue or liquidation?
Going under business rescue is proving to be an increasingly attractive option for South African companies that are in financial [...]
The special voluntary disclosure programme: an update and some practicalities and predicaments
By: The Werksmans Tax Team The Special Voluntary Disclosure Programme (“SVDP”) kicked off on 1 October 2016 and runs until [...]
Certain provisions of the Environmental Conservation Act remain in force
The case of the Minister of Water and Environmental Affairs v Really Useful Investments (436/2015) [2016] ZASCA 156 is a [...]
