McCarthy Attorneys Inc

Employee Earnings Threshold And The Basic Conditions Of Employment Act

Employee Earnings Threshold And The Basic Conditions Of Employment Act 

According to Government Gazette No 50254 dated 5 March 2024, the Minister of Employment and Labour announced that as of 1 April 2024, the new earnings threshold for employees will be adjusted to R254 371.67 (R21 197.63 per month).

This adjustment means that any employee who earns more than R254 371.67 annually is excluded from the following sections of the Basic Conditions of Employment Act: 

  • 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) – Working on public holidays 

“Earnings” is defined in the Act as “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.” It does not include subsistence or transport allowances, bonuses, commissions, other achievement awards and payment for overtime. 

Read the full gazette notice, here.

If you have any questions about other Labour or Land issues, contact McCarthy Attorneys Inc. on (033) 266 6170 or  via email