The threshold is used when determining the level of “protection” or “automatic rights” which an employee is afforded in terms of the Basic Conditions of Employment Act (BCEA), etc. So this means that the minimum standards for the following aspects are prescribed for those earning less than the threshold and cannot be reduced in the employment contract:
- Section 9 (hours of work)
- Section 10 (overtime)
- Section 11 (compressed working week)
- Section 12 (averaging of hours)
- Section 14 (meal intervals)
- Section 15 (daily and weekly rest periods)
- Section 16 (pay for work on Sundays)
- Section 17 (2) (night work), and
- Section 18 (3) (public holidays on which the employee would not ordinarily work)
The Department of Employment and Labour has just released the new earnings threshold which is published in terms of the BCEA, being R241 110,59 per year, or then some R20 092,55 per month. The effective date of this is 1 March 2023.
Employees earning less than this is generally afforded more firm rights on aspects as compared to anyone earning more than the BCEA threshold. “Earnings” is defined as 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: Performance-based bonuses and payment for overtime worked are also excluded from this calculation.
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