BCEA – Update on Earnings Threshold as at 01 March 2021
Author: Kusile Consulting Services
Notice has been issued with regards to the recently released determinations made by the Minister of Labour. The Minister of Labour has recently released the latest earnings threshold with effect from 01 March 2021 (the last change to the earnings threshold was in July 2014) the earnings threshold for the purposes of the Basic Conditions of Employment Act No 75 of 1997 will be increased to R211 596.30 per annum. This amounts to R17 633.02 per month.
What do earnings mean?
Earnings are defined in the determination as being an employee’s regular annual remuneration before deductions.
What does Earnings Threshold mean?
For practical purposes this means that with effect from 01 March 2021 only employees who earn in excess of R211 596.30 per annum will be excluded from the provisions of the BCEA pertaining to ordinary hours of work (Section 9), overtime (Section 10), Compressed working weeks (Section 11), averaging of hours of work (Section 12), meal intervals (Section 14), daily and weekly rest periods (Section 15 of the Act) pay for work on Sundays (Section 16), night work (Section 17(2)), and payment for public holidays on which the employee would not ordinarily work (Section 18 (3)).
Will this affect my employees who earn less than R211 596.30 per annum?
No, Any employee who earns below this threshold amount will be entitled, by law, to continue receiving payments and or benefits provided for in these sections. Also note that it is yet to be determined if the same threshold will be applied to Sectoral Determinations. The figure does not apply to Bargaining Councils.
Should you need any further assistance with the Earnings Threshold please do not hesitate to contact us at Managed People Solutions