Increase in the Basic Conditions of Employment Act Earnings Threshold

Starting from 1 May 2026, the employee earnings threshold has been increased by 3%, raising it to R269,601 per year, or R22,466.75 a month. Under the Basic Conditions of Employment Act, employees receive a monthly salary exceeding this amount are no longer covered by certain statutory protections, including the following: 

• Ordinary working hours 

• Overtime pay 

• Compressed working weeks 

• Averaging of working hours 

• Meal breaks 

• Daily and weekly rest periods 

• Payment for working on Sundays 

• Payment for night work 

• Payment for working on public holidays  

Under the Act, “earnings” refers to an employee’s total salary before any statutory or voluntary deductions are made. This includes all forms of  payment except for contributions made by the employer on the employee’s behalf. It also excludes items such as travel or subsistence allowances, bonuses, commission, performance‑based rewards, and overtime payments. 

In terms of the Employment Equity Act, employees earning more than R269,601 per year are not eligible to refer disputes concerning unfair discrimination to the Commission for Conciliation, Mediation and Arbitration (CCMA) for arbitration. Instead, such disputes must be addressed through the Labour Court. This rule does not apply to disputes relating to sexual harassment or cases where all parties have agreed to arbitration. 

Read the full gazette notice here