Basic Conditions Of Employment Act: Annual Earnings Threshold Increase - Lisa-Anne Schäfer-King

All employers are to take notice of the new annual earnings threshold that will come into effect from 1 April 2024. The annual earnings threshold has been increased from R241,110.59 to R254, 371,67.

For the purposes of calculation, annual earnings means the regular annual remuneration payments made to an employee prior to deductions such as income tax, pension, medical and similar payments excluding similar payments(contributions) made by the employer in respect of the employee, provided that the payment of subsistence and transport allowances, achievement awards and payments for overtime worked shall not be regarded as remuneration for the purpose of this calculation.

This has the effect that all employees who fall under the Basic Conditions of Employment Act (BCEA) and who earn in excess of R254 371.67 per year are excluded from sections 9 (ordinary working hours), 10 (overtime), 11 (compressed working week), 12 (averaging of hours of work),14 (meal intervals),15 (daily and weekly rest period), 16 (pay for work on Sundays), 17(2) (night work) and 18(3)(public holidays) of the BCEA with effect from 1 April 2024.

The annual earnings threshold impacts upon not only the BCEA but also the Labour Relations Act of 1995 and the Employment Equity Act of 1998.