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newsMichael Bagraim writes the earnings threshold in terms of section 6(3) of the Basic Conditions of Employment Act (BCEA) has been increased.

The Minister of Employment and Labour has published the new earnings threshold and has determined that with effect from 1 March 2021 it would increase to R211,596.30 per annum (approximately R17,633.00 per month). The previous earnings threshold was a gross income of R205,433.30 a year (or R17 119.44 per month) and had not been increased for seven years. From time to time, the Minister sets an earnings threshold in respect of certain sections of the BCEA. For who earns above the threshold, the employer does not have to adhere to Sections 9, 10, 11, 12, 14, 15, 16, 17(2) and 18(3) of the BCEA. Accordingly, employees earning in excess of the earnings threshold are excluded from the provisions which control ordinary hours of work, overtime hours and pay, compressed working weeks, averaging of hours of work, meal intervals, daily and weekly rest periods, weekend pay, night work pay and public holiday pay. The increase in the earnings threshold is long overdue and will be welcomed by workers who now fall under the threshold and so will be able to claim for overtime work and other protections afforded by the BCEA

  • Read Michael Bagraim’s report, entitled ‘Earnings threshold: what the law says’, on page 21 of The Star of 25 March 2021
  • Read too, A new employee earnings threshold has been issued. What does this mean for employees? at GoLegal

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