South Africa: BCEA Earnings Threshold increase

South Africa: BCEA Earnings Threshold increase

The Minister of Employment and Labour has issued a determination in terms of section 6(3) of the Basic Conditions of Employment Act, 75 of 1997 in terms of which the annual earnings threshold will increase from R211 596.30 per annum to R224 080.48 per annum as of 1 March 2022.

The Government Gazette No. 45890 Correction Notice 1736 was published 9 February 2022, determining that all employees earning in excess of R224 080.48 per annum be excluded from sections 9, 10, 11, 12, 14, 15, 16, 17(2) and 18(3) of this Act with effect from 1 March 2022.

"Earnings" means 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.