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 South African Reserve Bank announces South Africa’s first Deposit Insurance Body
and Siphosethu Zazela, Candidate Attorney The South African Reserve Bank (SARB) announced the establishment of the Corporation for Deposit Insurance (CODI) [...]
Food-focused Market Inquiry Lift Off! The Commission officially launches Fresh Produce Market Inquiry
The Competition Commission ("Commission") has today, 23 March 2023, formally launched the Fresh Produce Market Inquiry (“FPMI”), following the publication [...]
2023 Electricity Regulation Guide – South Africa
The 2023 edition of the Lexology GTDT Electricity Regulation quick reference guide is out! Director, Jonathan Behr and Kiera Bracher, [...]
On to the next! The Competition Commission Sets its Sights on Digital Platforms
The Competition Commission (Commission) plans to conduct an inquiry into the distribution of media content on digital platforms.[1] The inquiry, [...]
The Hate Crimes and Hate Speech Bill is a step closer to becoming law
by Dakalo Singo, Director and Head of Pro Bono Practice On 14 March 2023, the National Assembly passed the Prevention [...]
Sticking (it) to the rules? Sometimes, unless that would be unfair
by Bradley Workman-Davies, Director and Kelly Sease, Candidate Attorney CCMA Rules South African labour legislation sets up fundamental structures for [...]
