On 7 March 2025, the Minister of Employment and Labour published a determination of a new annual earnings threshold in terms of the Basic Conditions of Employment Act, 75 of 1997 (“BCEA”).
With effect from 1 April 2025 the threshold will increase from R254 371.67 per annum (or R21 197.63 per month) to R261 748.45 (or R21 812.37 per month) to.
Employees earning above this threshold are excluded from the following sections of the BCEA:
- ordinary hours of work;
- overtime;
- compressed working week;
- averaging of hours of work;
- meal intervals;
- daily and weekly rest periods; and
- compensation for work performed on Sundays, at night or on public holidays.
‘Earnings‘ means 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 allowance received or achievement awards, intermittent payments for occasional overtime shall not be regarded as remuneration for the purpose of this notice.
Employees who earn below the earnings threshold and are engaged in atypical forms of employment (fixed term, part time and labour broker employees) are also entitled to additional protection in terms of the Labour Relations Act, 66 of 1995.
For further details, please contact Melanie Hart at melanie@bv-inc.co.za.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For tailored guidance, please consult one of our legal professionals.