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
The Law on Guarantees revisited and confirmed
and Justin Duarte - Candidate Attorney Bonifacio and Another V Lombard Insurance Company Limited Case No.: 247/2023 The nature of [...]
European Union: Partial Revocation for Big Mac
A registered trade mark is vulnerable to revocation or cancellation for non-use if it has not been used for the [...]
A Lifeline for ESG in Investment Funds?
The battle over environmental and social governance principles continues round after round with the latest battle having been won by [...]
CFC Rules and SA Dividends – A Trap for the Unwary
Introduction The controlled foreign company (CFC) rules are contained in section 9D of the Income Tax Act, 1962 (the Act) and [...]
Understanding the Concept of the “Lock-Box”/”Locked Box” Mechanism in the Mergers and Acquisitions Space
"Lock-box" mechanism vs closing date account mechanism Parties to M&A deals usually have a particular price and/or valuation methodology in [...]
A Fiesta of Sports and IP
Over the past month or so, the world has been spoilt for choice with fiesta of sporting events from [...]
