As of 1 April 2025, the new earnings threshold for employees increased to R261,748.45 (R21,812.37 per month). This adjustment means that any employee who earns more than R261,748.45 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.
For more information, please read the full gazette notice, below.
If you have any questions about other Labour or Land issues, contact McCarthy Attorneys Inc. at (033) 266 6170 or via email.