Legal updates and opinions
News / News
New Earnings Threshold
and Danelle Plaatjies – Candidate Attorney
On 5 March 2024 the Minister of Employment and Labour, Thembelani Waltermade Nxesi, published a Government Gazette providing for the increase of the earnings threshold, as provided for in the Basic Conditions of Employment Act 75 of 1997 (“BCEA”). The increase will be from R241,110.59 to R254,371.67 per annum with effect of 1 April 2024.
The meaning of “Earnings” is set out in the Government Gazette notice as –
“the regular annual remuneration before deductions i.e income tax, pension, medical and similar payments but excluding similar payments(contributions) made by the employer in respect of the employee: Provided that subsistence and transport allowances received, achievement awards and payments for overtime worked shall not be regarded as remuneration for the purpose of this notice.”
Employees who earn in excess of the threshold are excluded from certain provisions of the BCEA including:
- 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)).
Latest News
Draft Amendments to the Pension Funds Act 24 of 1956: The Highlights
by Natalie Scott, Director and Kyra South, Associate On Friday, 26 February 2021, the National Treasury released a Media Statement regarding the [...]
Urgent update: extension of COVID-19 Temporary Employer / Employee Relief Scheme (“Ters”)
Urgent update: extension of COVID-19 Temporary Employer / Employee Relief Scheme ("Ters") On 28 February 2021 President Cyril Ramaphosa announced [...]
Business Rescue Practitioners – mind the trap!
by Roxanne Webster, Senior Associate and Siyabonga Galela, Candidate Attorney Reviewed by Eric Levenstein, Director and Lauren Becker, Director Introduction [...]
Shareholder “divorce” – is dissolution of the company a viable remedy?
by Rachel Winterbach, Candidate Attorney reviewed by Pierre le Roux, Director and Jarryd Mardon, Senior Associate It occurs in [...]
Duchess of Sussex, Privacy and POPIA
by Ahmore Burger-Smidt, Director and Head of Data Privacy Practice and member of Competition Law Practice; and Nyiko Mathebula, Candidate [...]
Minister Patel clarifies his views on employee share ownership programmes and Broad Based Ownership Schemes but uncertainty continues
by Pieter Steyn, Director and Head of Broad-Based Black Economic Empowerment (B-BBEE) Practice A new Broad Based Black Economic Empowerment [...]
