A substantial increase in the earnings threshold was recently announced. Effective from 1 April 2024, the earnings threshold has been raised to R254,371.67 per year (equivalent to R21,197.64 per month), which is a 5.5% increase from 2023. Why should you care about the earnings threshold? Because specific labour rights – including hours of work, overtime pay, meal breaks and pay for work over weekends and public holidays – are protected under the earnings threshold of the Basic Conditions of Employment Act (BCEA). Whether you earn below or above the threshold determines the protections you enjoy under the law, as Scorpion explains below.
Who Does the Earnings Threshold Apply To?
The earnings threshold is for employees earning above a set annual amount, excluding them from specific protections of labour legislation enjoyed by lower-earning employees.
What is the Effect of the Earnings Threshold?
Employees who earn more than R254,371.67 per year will not enjoy the same protections of the BCEA. These are:
- Section 9 (hours of work)
- Section 10 (overtime)
- Section 11 (compressed working week)
- Section 12 (averaging of hours)
- Section 14 (meal intervals)
- Section 15 (daily and weekly rest periods)
- Section 16 (pay for work on Sundays)
- Section 17(2) (night work), and
- ection 18(3) (public holidays on which the employee would not ordinarily work)
Can Existing Employment Contracts Be Amended?
No. Provisions that are favourable to the employee, for example, additional pay for overtime work, Sunday work, etc remain valid and enforceable. So an employer cannot simply take these provisions away. Any existing terms and conditions of employment must be negotiated with the employee, prior to any adjustments being made.
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*This is only basic legal advice and cannot be relied on solely. The information is correct at the time of being sent to publishing.