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
Misuse of the business rescue process – failure before it begins
by Dr. Eric Levenstein, Director and Head of Insolvency & Business Rescue and Amy Mackechnie, Senior Associate Business rescue was introduced [...]
Constitutional Court clarifies rights of innocent contractors under invalid state contracts
by Sarah Moerane, Director and Kuhle Joja, Associate In Minister of Defence and Military Veterans v Zeal Health Innovations (Pty) [...]
Untangling the mischief of section 43 of the Electronic Communications Act: A missed opportunity in the Amendment Bill
by Corlett Manaka, Director and Head of Disputes, Akhona Bilatyi, Director and Koketso Rapoo, Senior Associate On 12 March 2026, [...]
A charge by any other name would smell as sweet
by Bradley Workman-Davies, Director The Labour Appeal Court's judgment in Machi v Chep SA (Pty) Ltd and Others serves as [...]
When a misdirected email becomes a data breach: The Information Regulator issues an enforcement notice on internal and accidental security compromises
by Armand Swart, Director, Hlonelwa Lutuli, Associate and Isabella Keeves, Candidate Attorney On 22 May 2026, South Africa’s Information Regulator [...]
Renting out your home? The Consumer Protection Act does not apply to you says Supreme Court of Appeal
by Armand Swart, Director In the judgment of Els v Venter and Another (449/2024) [2025] ZASCA 163 (27 October 2025), [...]
