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
Heritage Matters: Celebrating Heritage Month 2023
In this Heritage Month, as we celebrate the richness of Traditional Knowledge (TK) and Traditional Cultural Expressions (TCEs), we [...]
“All change is good”: potential implications of the proposed changes to taxation of income subject to withholding taxes awarded by South African trusts to foreign beneficiaries
and Benedict Ngobeni - Candidate Attorney Reviewed by Ernest Mazansky - Director, Werksmans Tax (Proprietary) Limited Currently, income arising in [...]
The changing landscape of the Companies Act, 2008: the Second Amendment Bill, 2023
In the wake of the Zondo Commission of Enquiry into State Capture's recommendation that certain provisions in the Companies [...]
A definite end to an infinite loop – the interpretation of section 153(4) of the Companies Act, 71 of 2008
It is evident from recent judgments handed down by the Supreme Court of Appeal (the "SCA") that various provisions [...]
A South African perspective on the role of Pro Bono lawyers
This article was first published in TYL, a publication of the American Bar Association's Young Lawyers Division As a [...]
Employment in South Africa – a relationship built on trust
The employment relationship between an employer and its employees is heavily regulated in South African law and there are [...]
