Connect with us: (011) 532 8802 This email address is being protected from spambots. You need JavaScript enabled to view it. Find Us Subscribe to Newsletter

BCEA Earnings Threshold and Wage Increases

on .

Hospitality, MEIBC and the Furniture Bargaining Council

Herewith the latest updates regarding the BCEA Earnings Threshold for 2013 as well as the latest wage increases.

BCEA Earnings Threshold

As of 1 July 2013, the BCEA Earnings Threshold has been increased to R193 805.00 from the previous figure of R183 008.00. This amendment has the effect of extending rights in terms of the BCEA to employees earning below R193 805.00 per annum (R16 150.41 gross per month) which they have previously been denied whilst earning in excess of the previous figure of R183 008.00. Employees falling within this salary band (between R183 008 and R193 805) would henceforth be entitled to insist upon all rights conferred to them by the BCEA.

All employees earning in excess of the Threshold are excluded from the provisions in terms of sections 9, 10, 11, 12, 14, 15, 16, 17(2), 18(3) of the Act. Earnings in terms of the threshold are calculated as 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. Subsistence and transport allowances received, achievement awards and payments for overtime worked however are not considered to form a part of remuneration in the calculation of earnings relating to the threshold.

Click here to view the BCEA Earnings Threshold Determination.

Hospitality Sector

As of 1 July 2013 the minimum wages for the Hospitality sector have been increased to a minimum of R2 415.86 per month, R557.55 per week and R12.39 per hour for employers with 10 or less employees. Employers with more than 10 employees shall now be bound to paying a minimum of R2 692.74 per month, R621.45 per week and R13.81 per hour. Increases to take effect in 2014 and 2015 shall be calculated at the minimum wage of the preceding year + CPI + 1.5%.

In addition to the wage increase, clause 7B has also been inserted which provides that, should an employer provide an employee with a uniform, such employer shall not:

  • Require the employee to pay for the uniform;
  • Require the employee to pay any form of deposit for the uniform;
  • Deduct from the remuneration of the employee to pay for such uniform; or
  • Deduct from the remuneration of the employee any uniform deposit.

Click here to view the Hospitality sector wage tables.
 
MEIBC

MEIBC wage rates have increased by between 7% and 8% for rates A to H as of 1 July 2013. Increases for the respective grades provide for equal percentage increases between the higher and lower levels.

In terms of the publication, these increases may be set off against any interim increases granted on or after 1 July 2013.

Employees earning in excess of the specified minimum wage must be granted the percentage increase mentioned for that grade, on the actual amount earned for a particular grade.

Any employers wishing to apply for exemption from adhering to the minimum wages must submit applications to the Council no later than 31 July 2013.

Click here to view the MEIBC wage tables.

Furniture Bargaining Council

In terms of the annual minimum weekly wage increase for the Furniture Bargaining Council, it has been determined that an across the board increase of 7.2% shall be applicable to all employees covered by the agreement as of the first pay week in July 2013. This increase is applicable to employees in the Free State, Pretoria and Johannesburg. The increase percentage was determined based on the official recorded CPI rate for the year ending April 2013, which was 5.9%. The minimum wages for Free State Province, and Johannesburg and Pretoria respectively are as follows:

Free State Province:
Occupation Skills Level
Skills Level Code
Minimum Weekly Wage Rate
General Worker 05 R430.00
Semi-skilled Employee 04 R494.26
Skilled Employee 03 R649.77
Chargehand 02 R697.06
Foreman/Supervisor 01 R697.06
Johannesburg and Pretoria:
Occupation Skills Level
Skills Level Code
Minimum Weekly Wage Rate
General Worker 05 R430.00
Semi-skilled Employee 04 R633.55
Skilled Employee 03 R680.72
Charge hand 02 R734.32
Foreman/Supervisor 01 R734.32

Increases for employees earning in excess of the minimum is calculated at their current weekly wage rate plus 7.2%.

Click here to view the Furniture Bargaining Council wage tables for Free State Province.

Click here to view the Furniture Bargaining Council wage tables for JHB and PTA.