The Minister of Employment and Labour adjusted the Basic Conditions of Employment Act (BCEA) earnings threshold as of 1 April 2024.
The new threshold will be R254 371,67 per annum, which amounts to R21 197,63 per month.
Employees earning below the threshold amount automatically qualify for prescribed arrangements regarding the following aspects at work:
- Ordinary hours of work;
- Overtime;
- Compressed working weeks;
- Averaging of hours of work;
- Meal intervals;
- Daily and weekly rest periods;
- Sunday pay;
- Pay for night work; and
- Pay for work on public holidays.
Employers should conduct an assessment to ensure that the employees impacted by the increase in the threshold are treated accordingly by making the necessary changes to employment conditions or compensation structures. Non-compliance may cause unintentional violations of the BCEA or its deeming provisions and this may lead to penalties being imposed.
An employee’s earnings is calculated to include their annual gross remuneration (before deductions) and excludes any overtime, achievement awards, transportation, and subsistence allowances.
It is advisable to contact a reputable Labour Law Practitioner to advise on how these changes affect your business and payroll.