Increase to BCEA minimum threshold (with effect from 1 July 2013)

Wednesday July 3rd, 2013

ISSUE IN DISPUTE

The Minister of Labour has issued a notice in terms of section 6(3) of the Basic Conditions of Employment Act 75 of 1997, as amended, (“BCEA”) increasing the earnings threshold from R183 008 (one hundred and eight three thousand and eight rand) to R193 805 (one hundred and ninety three thousand eight hundred and five rand) with effect from 1 July 2013.

For purposes of the 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.

Employees earning above the threshold will not (unless by agreement between the parties) be entitled to the full protections and benefits under the BCEA in respect of ordinary hours of work, overtime, compressed working week, averaging of hours of work, meal intervals, daily and weekly rest periods, pay for work on Sundays, night work and work on public holidays. An employee earning below the threshold will, for example, be entitled to payment for overtime worked; and for work performed on Sundays and on a public holiday on which the employee would ordinarily not be required to work.