ARTICLE · 24 FEBRUARY 2021

Increase To BCEA Earnings Threshold

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On 8 February 2021 the Minister of Employment and Labour, Thembelani Waltermade Nxesi, published a Government Gazette

South AfricaEmployment and HR

Jacques Van Wyk

Andre Van Heerden

Thabisa Yantolo

On 8 February 2021 the Minister of Employment and Labour, Thembelani Waltermade Nxesi, published a Government Gazette¹ providing for the increase of the earnings threshold, as provided for in the Basic Conditions of Employment Act 75 of 1997 ("BCEA"). The new earnings threshold will be R211,596.30 per annum with effect of 1 March 2021.

'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: 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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