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
What happens to confidential information exchanged between the Competition Commission and sector regulators as the number of co-operation
The protection of confidential information has always been a feather in the cap of the Competition Commission (“Commission”). The Competition [...]
Special voluntary disclosure and exchange control relief
By: The Werksmans Tax Team INTRODUCTION Following the announcement of the Special Voluntary Disclosure Programme (SVDP) in [...]
Is the alleged transfer of an insolvent business indeed a transfer as a going concern
Mokhele & Others v Schmidt & Others (JS 564/11) 19 May 2016 ISSUE Whether the alleged transfer of an [...]
Can a strike be rendered unlawful as a result of unlawful acts including acts of violence?
National Union of Food Beverage Wine Spirits and Allied Workers (NUFBWSAW) and others v Universal Product Network (Pty) Ltd In [...]
Is a collective agreement valid and binding, despite a dispute as to the authority of those purporting to conclude the agreement?
South African Airways (Soc) Ltd & another v National Transport Movement & others (Case no: J1872/2015, 12 May 2016) [...]
The meaning of the term ‘pay back’ in a settlement agreement
Genrec Engineering (Pty) Ltd v Metal and Engineering Industries Bargaining Council and Others [2016] ZALCJHB 213 (17 June 2016) ISSUE [...]
