The Minister of Labour has issued a notice in terms of section 6 (3) of the Basic Conditions of Employment Act 75 of 1997, as amended, increasing the earnings threshold from R193 805.00 to R205 433.30 with effect from July 1, 2014.

 

The threshold earnings point to the regular annual remuneration before deductions i.e income tax, pension, medical and similar payments but excluding similar payments (contributions) made by the employer in respect of the employee, provided that subsistence and transport allowances received, achievement awards and payments for overtime worked shall not be regarded as remuneration.

 

Employees earning above the threshold will not (unless by agreement between the parties) be entitled to the full protection and benefits under the BCEA in respect of ordinary hours of work, overtime, compressed working week and weekly rest periods, pay for work on Sundays, night work and work on public holidays. An employee earning below the threshold will, for example, be entitled to payment for overtime worked, and for worked performed on Sundays and on public holidays on which the employee would ordinarily not be required to work.