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
Cautionary notes for companies and influencers
Influencer advertising In 2022, even the most pessimistic advertiser is unlikely to bet on the fact that the rise in [...]
The South African Reserve Bank’s new monetary policy implementation framework
On the 8th of June 2022, the South African Reserve Bank (SARB) commenced with its 12-week transition to a new [...]
A new Covid 19 code: has anything really changed?
by Anastasia Vatalidis, Head of Labour & Employment, Sandile Tom, Director, and Benedict Ngobeni, Candidate Attorney On the heels of [...]
Affected persons are invited – again – to provide comments on The Code of Conduct for The Banking Association of SA
On 24 June 2022, the Information Regulator of South Africa (Information Regulator) published a notice in terms of section 61(2) [...]
Gerrymandering Healthcare? Certificate of need
The term "gerrymander" is used primarily in the context of shifting the boundaries or borders of voting constituencies in order [...]
Business Rescue Proceedings in South Africa
Business Rescue Proceedings A company should commence business rescue proceedings at the first signs of it being financially distressed, within [...]
