BRENTWOOD

2023-02-21

New earnings threshold effective 1 March 2023: R241 110.59 per annum

The Minister of Employment and Labour has increased the earnings thresholds to R241 110.59 per annum (R20 092.54 per month) as of 01 March 2023.

This threshold is the dividing line where certain provisions of the Basic Conditions of Employment Act, Labour Relations Act and the Employment Equity Act (EEA) do not apply to those earning above the R241 110.59 per annum threshold.

The sections covered in these acts are intended to protect vulnerable employees.

Basic Conditions of Employment Act
Employees earning in excess of the earnings threshold are excluded from the provisions, which regulate ordinary hours of work, overtime, compressed working weeks, averaging of hours of work, meal intervals, daily and weekly rest periods, Sunday pay, pay for night work and pay for work on public holidays.

Labour Relations Act.
Labour Broker employees earning less than the threshold but are not performing a temporary service are considered to be employees of the labour broker’s client.

Fixed Term contact employees earning under the threshold and whose contract exceeds three months will be considered to be permanently employed.

Employment Equity Act
An employee earning in excess of the earnings threshold dispute relating to unfair discrimination, is not permitted to refer the dispute to the CCMA for arbitration and is obliged to refer the dispute to the Labour Court for adjudication.

Determining the earnings
An employee’s regular annual remuneration before the deduction of income tax, pension fund contributions, medical aid contributions and similar payments, but excludes similar contributions made by the employer in respect of the employee.