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
A Snapshot of COP28: the good, the bad and the promising
It has been almost two months since the United Nations ("UN") Climate Change Conference of the Parties to the UN [...]
SARS Binding Private Ruling 399: Replacing an asset shortly after its acquisition under an asset-for-share transaction
and Luke Magerman, Candidate Attorney A recent ruling published by SARS deals with the anti-avoidance implications of the disposal of [...]
Privacy: human right or fallacy in the digital world?
"The real question is, when will we draft an artificial intelligence bill of rights? What will that consist of? And [...]
Communities in the centre of the mining revolution: Land issues dog inclusive mining
Marking its 30th anniversary of the Investing in Mining Indaba in Cape Town, which incidentally coincides with South Africa's 30 [...]
Werksmans Technology Media and Telecommunications Africa Quarterly e‑Bulletin
This e-bulletin highlights key legislative and regulatory developments in the technology, media and telecommunications sectors in sub-Saharan Africa. This issue [...]
No time for dark humour in the workplace – Load shedding is no joke!!
and Tasreeq Ferreira - Candidate Attorney Issue Whether an employee's dismissal for posting a WhatsApp message, purporting to be from [...]