Increased Earnings Threshold 2023

Increased Earnings Threshold 2023

The earnings threshold in terms of Section 6 (3) of the Basic Conditions of Employment Act, No. 75 of 1997 (BCEA) is amended from time to time. The threshold indicates the maximum annual salary that an employee may earn to be included in some of the BCEA’s provisions. Specifically, any employee earning in excess of the threshold are excluded from the application of the following sections of the BCEA:

• 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): Pay for work on Public Holidays

On 1 March 2023, the BCEA earnings threshold increases to R241,110.59 (Two hundred and forty-one thousand, one hundred and ten rands, fifty-nine cents) per year.

The practical implication for employers is that any employees previously earning above the threshold, but now earning below it, are entitled to the abovementioned BCEA provisions, and employers will need to ensure they comply with these developments.

This article is a general information sheet and should not be used or relied on as legal or other professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your adviser for specific and detailed advice. Errors and omissions excepted (E&OE).