South Africa | Increase in the BCEA earnings threshold

South Africa | Increase in the BCEA earnings threshold

South Africa's Minister of Employment and Labour published Government Gazette 54544, increasing the BCEA (Basic Conditions of Employment Act) earnings threshold effective 1 May 2026.

What is changing

BCEA earnings threshold

  • From 1 May 2026, the earnings threshold increases from R261 748.45 to R269 600.90 per annum.
  • Employees earning more than R269 600.90 per annum are excluded from the following BCEA sections:
    • Section 9 (ordinary hours of work)
    • Section 10 (overtime)
    • Section 11 (compressed working week)
    • Section 12 (averaging of hours of work)
    • Section 14 (meal intervals)
    • Section 15 (daily and weekly rest period)
    • Section 16 (pay for work on Sundays)
    • Section 17(2) (night work)
    • Section 18(3) (public holidays not ordinarily worked)

Definition of "earnings" for threshold purposes

  • "Earnings" means the regular annual remuneration before deductions, including income tax, pension, medical and similar payments, but excluding similar contributions made by the employer on behalf of the employee.
  • The following are not regarded as remuneration for this purpose: subsistence and transport allowances received, achievement awards, and payments for overtime worked.

Definition of "remuneration"

  • "Remuneration" means any payment in money or in kind, or both, made or owing to any person in return for that person working.

Official source