New Earnings Threshold: Are You Affected?
As of April 1, 2024, South African Labour Law saw an adjustment to the earnings threshold outlined in the Basic Conditions of Employment Act (BCEA). This blog post from Labour Law with Luzan will break down what this means for employers and employees.
What is the Earnings Threshold?
The BCEA sets out various regulations regarding working conditions, including limitations on working hours, overtime pay, and rest periods. However, these protections don’t apply universally. The earnings threshold acts as a cut-off point. Employees earning above a certain annual amount are excluded from specific sections of the BCEA.
The Increase and What It Means
Previously, the threshold sat at R241,110.59 per year. Effective April 1, 2024, it has increased to R254,371.67. This means employees who were previously excluded from certain protections due to exceeding the earnings threshold may now be entitled to them.
What Sections Are Affected?
Here are the specific sections of the BCEA impacted by the earnings threshold:
- Section 9: Limits ordinary working hours to 45 hours per week.
- Section 10: Regulates overtime pay for exceeding ordinary hours.
- Section 11: Outlines limitations on compressed working weeks.
- Section 12: Deals with averaging working hours over specific periods.
- Section 14: Mandates meal intervals for employees working extended hours.
- Section 15: Ensures minimum daily and weekly rest periods.
- Section 16: Guarantees increased pay for Sunday work.
- Section 17(2): Regulates night shift allowances.
- Section 18(3): Addresses public holiday pay for employees not ordinarily scheduled to work those days.
Are You Affected?
If you are an employer, review your employee contracts, particularly for those earning between R241,110.59 and R254,371.67 annually. These employees may now be entitled to benefits they weren’t receiving before.
Employees earning above the new threshold should familiarize themselves with the aforementioned sections of the BCEA to understand their rights regarding working hours, overtime, rest periods, and public holiday pay.
Need Help?
Labour Law with Luzan is here to assist employers and employees in navigating the intricacies of South African Labour Law. Contact us today for consultations or with any questions regarding the earnings threshold and its implications.
Disclaimer: This blog post is for informational purposes only and does not constitute legal advice. Please consult with a qualified legal professional for specific guidance.
