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
The right to a fair hearing trumps the contract of employment
By: Jacques van Wyk, Director and Andre Van Heerden, Senior Associate and Yusha Davidson, Candidate Attorney ISSUE Can an employee be [...]
Automatically unfair dismissals versus legitimate dismissals for operational requirements: the importance of the ‘true reasons’ for the dismissal
By: Jacques van Wyk, Director, Andre van Heerden, Senior Associate and, Unathi Jukuda, Candidate Attorney ISSUE Whether, in dismissing employees, the [...]
Corroborative evidence is required to establish intoxication
By: Jacques van Wyk, Director, Andre van Heerden, Senior Associate and, Unathi Jukuda, Candidate Attorney ISSUE Whether an employer can dismiss [...]
Is an employee able to avoid a disciplinary hearing or disciplinary sanction by resigning?
It is trite law that employees may resign from his employment, either with immediate effect or on notice, thereby unilaterally [...]
Paternity leave
By Jacques van Wyk, Director and Yusha Davidson, Candidate Attorney The Basic Conditions of Employment Act 75 of 1997 ("BCEA") [...]
Struggle songs in the workplace
By Jacques van Wyk, Director and Yusha Davidson, Candidate Attorney ISSUE Is the singing of struggle songs in the workplace [...]
