BCEA EARNINGS THRESHOLD INCREASE

On 08 February 2022, the Minister of Employment and Labour announced that the “earning threshold” in terms of the Basic Conditions of Employment Act, 1997 (“BCEA”) has increased. 

The earnings threshold was previously R211 596.30 per year (approximately R17 633.00 per month).

As of 01 March 2022, the new earnings threshold will be R224 080.48 per year (approximately R18 673.37 per month). 

Earnings is defined as: 

“The regular annual remuneration before deductions, but excludes benefits such as subsistence and transport allowances, achievement awards and payments for overtime worked” 

Employees who earn more than the earnings threshold per annum are excluded from the protection of sections 9, 10, 11, 12, 14, 15, 16, 17(2) and 18(3) of the Basic Conditions of Employment Act, 1997. 

Therefore, employees who earn more than R224 080.48 will be excluded from the above (“BCEA”) and will not be entitled to the protection and rights under: 

• Section 9 (Ordinary hours of work) 

• Section 10 (Overtime) 

• Section 11 (Compressed working week) 

• Section 12 (Averaging of hours of work) 

• Section 14 (Meal intervals) 

• Section 15 (Daily and weekly rest period) 

• Section 16 (Pay for work on Sundays) 

• Section 17(2) (Night work) 

• Section 18(3) (Public holidays not ordinary worked) 

Further, in terms of the Employment Equity Act No. 55 of 1998 (“EEA”), an employee that earns above the earnings threshold who has a dispute under Chapter II of the EEA relating to unfair discrimination, will not be able to refer the dispute to the CCMA. 

The above provisions of the BCEA must then be provided for in the employment contract where employees earn above the threshold. 

Please feel free to contact us for any further information and advice.

Written by: 

DUNSTAN FARRELL