Newsflash! Change in the Earnings Threshold

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Basic Conditions of Employment Act: Minimum wages

The minimum wages for the contract cleaning sector and for the wholesale and retail sector will be amended 1 March 2022.

Basic Conditions of Employment Act: Working time regulation threshold

From 1 March 2022 all employees earning above R224 080,48 per annum will be excluded from sections 9 (hours of work); 10 (overtime); 11 (compressed week); 12 (averaging hours); 14 (meal intervals); 15 (rest period); 16 (Sunday work); 17(2) (night work); and 18(3) (public holidays).

Note: The threshold is also relevant to section 9A (daily wage amount), 73A (claims for failure to pay any amount), and 83A (presumption as to who is an employee) of the Act.

Further note: The threshold is also relevant to section 10 of the Employment Equity Act (disputes concerning the chapter on unfair discrimination) .

We usually have the following clause in our contracts for staff that are not regulated by the industry and who earn more than the Earnings Threshold:

As the employee earns more per annum than the annual threshold set by the Minister of Labour, currently R224 080,48 per annum as calculated by the government gazette provisions, the Employee is excluded from the provisions of Chapter 2 of the BCEA regulating working hours. Therefore, the Employee has no maximum hours per week; is not entitled to overtime, meal intervals, daily or weekly rest periods; is not paid for Sunday work, night shift allowance; and does not receive additional pay for working on Public Holidays which fall on a day on which the employee would ordinarily work.

Often employers give increases to staff and do not check if that puts the employee over the earnings threshold.

“Earnings” means 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 for the purpose of this notice.

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