Legal updates and opinions
News / News
New Earnings Threshold
and Isabella Keeves, Candidate Attorney
As of 1 April 2025, the annual earnings threshold as stipulated under the Basic Conditions of Employment Act 75 of 1997 (“BCEA”) will increase from R254,371.67 per year to R261,748.45 per year.
This increase has arisen from the recent publication of the Government Gazette on 7 March 2025 by the Minister of Employment and Labour. A link to the relevant gazette can be found here, Basic Conditions of Employment Act Determination Earnings Threshold 2025.pdf
The annual earnings threshold is a monetary ceiling for employee income and provides that employees that earn above the threshold on an annual basis will be exempt from certain statutory provisions contained within the BCEA.
These statutory provisions are:
- 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 they would not ordinarily work (section 18(3)).
These provisions are of relevance in that they all ultimately provide a limitation on ordinary working hours, overtime hours, and provide for an entitlement to overtime pay, for employees who earn below the threshold. Employers should keep an eye on this annual threshold amount, as it is changed and updated frequently by the Department of Employment and Labour.
Latest News
China: motivation for e-commerce to act against counterfeiting
By Janine Hollesen and Donvay Wegierski, Directors On 31 August 2018, China introduced legislation making online operations accountable. Online service [...]
Dismissing an employee for refusing to obey instructions
By Jacques van Wyk, Director and Yusha Davidson, Candidate Attorney ISSUE Can you dismiss an employee who refuses to obey [...]
Johannesburg CBD fire – health and safety at work
By Bradley Workman-Davies, Director The recent fire which broke out in a government building in central Johannesburg lead to the [...]
Labour Webinar
Our Labour experts discuss the implications of the proposed amendments to the Labour Relations Act (LRA) relating to industrial action.
Limiting employment claims: protection where it is needed
South African labour laws are renowned as being progressive and protective of employees' rights, and labour dispute resolution procedures are [...]
Tightening up on the offshore trust rules
The general principle is that South African resident individuals who have settled offshore trusts are taxed on the income and [...]
