Legal updates and opinions
News / News
Increase to BCEA earnings threshold
by Jacques van Wyk, Director; Andre van Heerden, Senior Associate; and Thabisa Yantolo, Candidate Attorney
On 8 February 2021 the Minister of Employment and Labour, Thembelani Waltermade Nxesi, published a Government Gazette[1] providing for the increase of the earnings threshold, as provided for in the Basic Conditions of Employment Act 75 of 1997 (“BCEA”). The new earnings threshold will be R211,596.30 per annum with effect of 1 March 2021.
‘Earnings’ is defined 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 such as those relating to 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)).
[1] Gazette Number: 44137. Notice No: 77.
Latest News
Minister Patel clarifies his views on employee share ownership programmes and Broad Based Ownership Schemes but uncertainty continues
by Pieter Steyn, Director and Head of Broad-Based Black Economic Empowerment (B-BBEE) Practice A new Broad Based Black Economic Empowerment [...]
2021/2022 Budget Proposals – Tax Overview
2021/2022 Budget Proposals – Tax Overview By: The Werksmans Tax Team INTRODUCTION This was a Budget focused on big spending [...]
Share Repurchases, Schemes of Arrangement and the Takeover Regulations
Share Repurchases, Schemes of Arrangement and the Takeover Regulations by Brian Price, Director and Raquel Goncalves, Candidate Attorney Since the [...]
Update: COVID-19 Temporary Employer / Employee Relief Scheme (“Ters”) audit pack
by Jacques van Wyk, Director and Andre van Heerden, Senior Associate On 27 November 2020 the Department of Employment and [...]
Information Regulator issues Guidelines for the development of Codes of Conduct effective 1 March 2021
by Ahmore Burger-Smidt, Director and Head of Data Privacy Practice and member of Competition Law Practice; and Dimakatso Khumalo, Candidate [...]
Update: extension of the COVID-19 Temporary Employer / Employee Relief Scheme
by Jacques van Wyk, Director and Andre van Heerden, Senior Associate On 18 February 2021 the Department of Employment and [...]
