According to a notice published in the Government Gazette, the new earnings threshold is set at $14204.62 per year or $1183.72 per month. This represents an increase of $400.32, or a 2.9% rise from last year’s threshold.

The earnings threshold impacts the application of provisions of the Basic Conditions of Employment Act, the Labour Relations Act and the Employment Equity Act. In terms of the new regulations, employees earning more than the earnings threshold are excluded from the provisions which regulate ordinary hours of work, overtime, Sunday pay, pay for night work and pay for work on public holidays among others.

Labour expert Malesela Letwaba from Cliffe Dekker Hofmeyr says, “If we look at the purpose of the Basic Conditions of Employment Act, it’s there to protect the most vulnerable employees, who are not the higher-end or higher-earning employees in the South African workforce. By entitling them to these protections afforded in Chapter 2, they can approach forums such as the CCMA and various bargaining councils to enforce their Chapter 2 rights.”

He adds, “In contrast, employees earning above the threshold are deemed well-remunerated and can enforce those rights either before the CCMA or, where applicable, the Labour Court of South Africa.”

--SABC--