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
Excessive delay in disciplinary proceedings could render the dismissal unfair
Lethoba and Rand Water (2025) 46 ILJ 2771 (CCMA) by Andre van Heerden - Director and Mikayla Ehrenreich - Candidate Attorney [...]
What’s in a name – Trade marks and Brooklyn Beckham
by Donvay Wegierski, Director What's in a name - Trade marks and Brooklyn Beckham Brooklyn Beckham, son to British born [...]
Not Every Employee Is a Whistleblower (And Not Every Disciplinary Hearing Is Up for Debate)
by Bradley Workman-Davies - Director The Labour Court’s judgment in Modika v Industrial Development Corporation of South Africa and another [...]
Deadlines Are Not Suggestions (And Finality Still Matters)
by Bradley Workman-Davies - Director The Labour Appeal Court’s decision in NUMSA obo Members v Macsteel Service Centres South Africa [...]
Redundancy and the Duty to Consult: Lessons from Tsogo Sun Casinos v SACCAWU
by Jacques van Wyk - Director and Mike Searle - Candidate Attorney Retrenchment is often described as a ‘no-fault’ dismissal, [...]
Your Workforce Is Not Your Property
by Bradley Workman-Davies - Director The Labour Court’s judgment in Man Mining Technical Services (Pty) Ltd v Eagle Creek Investments [...]
