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ARTICLE · 03 APRIL 2025

New Earnings Threshold Under The Basic Conditions Of Employment Act

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On 7 March 2025, the Minister of Employment and Labour published her determination of a new earnings threshold under the Basic Conditions of Employment Act, 1997 (‘BCEA').

CanadaEmployment and HR
Owethu Mbambo
Owethu Mbambo
Tamrin Slager
Tamrin Slager
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On 7 March 2025, the Minister of Employment and Labour published her determination of a new earnings threshold under the Basic Conditions of Employment Act, 1997 ('BCEA').

As of 1 April 2025, the earnings threshold prescribed by section 6(3) of the BCEA will increase from R 254 371,67 per annum (equivalent to R21 197.64 per month) to R261 748,45 per annum (equivalent to R 21 812.37 per month).

For this purpose, the term 'earnings' refers to regular remuneration before deductions, and excludes employer contributions made in respect of the employee, subsistence and transport allowances, achievement awards, and payments for overtime.

The increase in the earnings threshold means that employees earning less than R 21 812.37 per month (previously R21 197.64) will now fall within the scope of the special requirements provided for by legislation.

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