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
Changes to the tax treatment of trust income awarded to foreign beneficiaries on the horizon
Currently, income that arises in a South African trust which is awarded to a foreign beneficiary during the same [...]
Generative AI: It’s magic but fraught with legal risks
and Hlonelwa Lutuli, Candidate Attorney The use and beneficial application of generative AI in the workplace is increasing at an [...]
The correct approach to Section 138(5)(a) of the LRA: rescission or re-enrolment?
On 27 May 2023, as a direct response to Labour Appeal Court's judgement of Mohube v Commission for Conciliation, Mediation and [...]
Hand over the tax records! Section 35 and 46 of PAIA unconstitutional
and Siyabonga Galela, Candidate Attorney On 30 May 2023, the Constitutional Court handed down its ruling in the matter of [...]
Numerical Targets: No jobs will be lost!
The publication of the Employment Equity Regulations on 12 May 2023 has been the subject of much public controversy. [...]
Certificate of need in the healthcare sector: not needed
The National Health Act or NHA[1] makes provision for a system of licensing referred to as a certificate of [...]
