New 2026 BCEA earnings threshold and what it means
On 17 April 2026 the Department of Employment and Labour published the determination of the new earnings threshold under the Basic Conditions of Employment Act (BCEA), issued as Government Notice 7384 in Government Gazette 54544. It records the Minister’s decision – made in terms of section 6(3) of the BCEA – to set the level above which certain “working time” protections in the Act do not automatically apply to employees.
What the “earnings threshold” is
In practical terms, the earnings threshold is a statutory cut‑off amount used to distinguish between employees who enjoy the BCEA’s full suite of protections around working time and premium pay, and employees who are excluded from specific sections once their earnings exceed the threshold. The 2026 notice confirms that, from 1 May 2026, employees earning more than R269,600.90 per annum fall “over the threshold” for these purposes.
The determination also matters because “earnings” is not a casual concept; it is defined for the notice. “Earnings” refers to an employee’s regular annual remuneration before deductions (for example, income tax, pension, medical and similar deductions), while excluding comparable employer contributions. In addition, the notice indicates that items such as subsistence and transport allowances, achievement awards, and overtime payments are not treated as remuneration for the purpose of calculating whether the threshold is exceeded.
Which BCEA sections are excluded once an employee earns above the threshold
The heart of the determination is the list of BCEA provisions that no longer apply automatically to employees who earn above the threshold. The 2026 notice confirms that employees earning in excess of R269,600.90 (R22 466.74 per month) are excluded from sections 9, 10, 11, 12, 14, 15, 16, 17(2) and 18(3) of the BCEA.
Put simply, these are the BCEA rules that regulate hours of work and related premium payments, including:
- Ordinary hours of work (s 9) and overtime (s 10), as well as arrangements like compressed working weeks (s 11) and averaging of hours (s 12).
- Mandatory meal intervals (s 14) and daily/weekly rest periods (s 15).
- Premium-pay provisions covering Sunday work (s 16), certain night work entitlements limited to section 17(2), and the targeted public-holiday payment rule in section 18(3) (which deals with payment when a public holiday falls on a day the employee would not ordinarily have worked).
A helpful way to describe the impact is that the exclusions primarily remove statutory “floor” protections on working time limits and automatic premium pay, leaving more room for these terms to be governed by contract – subject, of course, to other applicable laws and any more favourable contractual benefits.
What has changed
The 2026 determination represents an increase from the previous threshold of R261,748.45 per annum, which took effect on 1 April 2025. The new level – R269,600.90 per annum – therefore raises the dividing line and applies from 1 May 2026, meaning some employees who were previously “over threshold” may fall below it if their earnings have not kept pace, while others may newly move above it depending on increases and allowances. This is roughly a 3% increase from the prior figure.
Why this matters in the workplace
For employers, the determination is a compliance trigger: payroll and timekeeping practices should correctly identify who is below the threshold (and therefore entitled to the BCEA’s working-time protections and premium pay) and who is above it (and therefore excluded from the listed sections). For employees, it clarifies when the BCEA’s standard rules on overtime, rest breaks and Sunday/public-holiday premiums apply as a matter of law – and when those issues are more likely to turn on the contract and workplace policies instead.
Read the BCEA Earnings Threshold 2026 Here.
