Two recent developments in employment law are important for
employers to bear in mind.
BCEA earnings threshold
The Minister of Employment and Labour has published the new
earnings threshold in terms of the Basic Conditions of Employment
Act, 1997 (BCEA).
With effect from 1 March 2021, the BCEA
earnings threshold increases to ZAR 211
596.30 (from ZAR 205 433.30) per annum. The earnings
threshold was last revised almost seven years ago.
‘Earnings' means the regular annual remuneration of
an employee before deductions in respect of tax, medical aid,
retirement fund and similar payments, but excludes similar benefit
contributions made by the employer. Subsistence allowances,
transport allowances, achievement awards, and overtime payments are
also not included.
