Legal updates and opinions
Post Author
News / News
Earnings threshold increase for 2022
Annual earnings threshold increase for 2022
The Basic Conditions of Employment Act 75 of 1997 (“BCEA“) empowers the Minister of Employment and Labour to make determinations, from time to time, regarding an earnings threshold.
The effect of such determinations is that employees earning in excess of the threshold amount stipulated in the determination are excluded from relying on numerous protections in the BCEA.
On the other hand, employees earning below the earnings threshold enjoy protections in the BCEA relating to the regulation of ordinary hours of work, overtime, compressed working weeks, averaging of hours of work, meal intervals, daily and weekly rest periods, pay for work on Sundays, pay for night work and public holidays.
They also enjoy some protections in the Labour Relations Act 66 of 1995 relating to the regulation of non-standard employment (for example: employees who work for the client of a temporary employment service or labour broker; and employees who are employed on fixed-term contracts). Additionally, employees or workers earning below the threshold amount may refer claims for non-payment in terms of section 73A of the BCEA to the CCMA.
With effect from 1 March 2022, the earnings threshold has been increased by the Minister to R224 080.48 per annum (which amounts to R18 673.37 per month).
Before this increase, the previous earnings threshold was R211 596.30 (or R17 633.03 per month).
It is important to note that the word “earnings” as it applies in this context means an employee’s regular annual remuneration before deductions (such as income tax, contributions to a pension/provident fund and/or medical aid scheme and similar payments), but excludes similar contributions made by the employer in respect of the employee. Further exclusions in this regard include subsistence and travel allowances, achievement awards and overtime.
Latest News
Your customer has entered business rescue. The next move matters
by Eric Levenstein, Director and Head of Insolvency & Business Rescue, Amy Mackechnie, Senior Associate, and Clio Patricios, Candidate Attorney [...]
Invisible data collection through a privacy lens
by Ahmore Burger-Smidt, Director and Head of Regulatory More than seven million pairs of Meta’s Ray-Ban smart glasses were sold [...]
Cybercrime across borders: Navigating Africa’s fragmented legislative landscape – Part 2
by Ahmore Burger-Smidt, Director and Head of Regulatory, and Boitumelo Khwene, Candidate Attorney In Part one of this series, we [...]
Cybercrime across borders: Navigating Africa’s fragmented legislative landscape – Part 1
by Ahmore Burger-Smidt, Director and Head of Regulatory, and Boitumelo Khwene, Candidate Attorney The Compliance Imperative By the time you [...]
The externalisation of South African Intellectual Property – Navigating exchange control rules and copyright law in cross-border computer software development
by Janine Hollesen, Director and Head of Intellectual Property, Deon Griessel, Director, and Khanyisa Tshoba, Associate 1. The Regulatory Landscape: [...]
When AI becomes the incident: From rogue agents to prompt injection – Is your organisation ready to detect it, stop it and report it?
by Tebogo Sibidla, Director Artificial Intelligence (AI) is rapidly moving from answering questions to taking actions on our behalf. This [...]
