New BCEA earnings threshold from 1 March 2021

​The Department of Employment and Labour (DEL) has published a new earnings threshold under the Basic Conditions of Employment Act 75 of 1997 (BCEA). The new earnings threshold will take effect from 1 March 2021. The earnings threshold was last amended 7 years ago on 1 July 2014.

The table below summarises the new change to the earnings threshold –

  Current threshold New threshold (wef 1 March 2021)
Earnings threshold205 433.30 ZAR per annum211 596.30 ZAR per annum


Section 6 of the BCEA empowers the Minister of Employment & Labour to publish an earnings threshold that will exclude employees who earn above that amount from certain sections of the BCEA as follows –


Ordinary hours of work (Section 9)  Overtime (Section 10)  Compressed working week (Section 11)  Averaging of hours of work (Section 12)  Determination of hours of work by Minister (Section 13)


Meal Intervals (Section 14)  Dailing and weekly rest period (Section 15)  Pay for work on Sundays (Section 16)  Night work [Section 17(2)]  Pay for work on public holidays [Section 18(3)]


The following sections of the Labour Relations Act 66 of 1995 apply to employees earning below the earnings threshold –


Labour broker workers (Section 198A)  Fixed term employees (Section 198B)  Part time workers (Section 198C)


It is important for employers to assess whether employees previously exc​luded from the application of the applicable sections of the LRA and/or BCEA as set out above now fall under these sections.  This may have significant financial consequences for an employer.​

 


Webber Wentzel > News > New BCEA earnings threshold from 1 March 2021
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