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 –
New threshold (wef 1 March 2021)|
Earnings threshold||205 433.30 ZAR per annum||211 596.30 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 excluded 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.