The Minister of Employment and Labour has published a new earnings threshold in terms of Section 6(3) of the Basic Conditions of Employment Act 75 of 1997. The new threshold is R 269 600.90 and will be effective from 1 May 2026. This is an increase of 3%.
The effect of the earnings threshold is that the limitations, protections or the right to additional pay afforded by certain provisions of the BCEA, do not apply to employees earning more than the new threshold. These provisions are:
Ordinary hours of work (Section 9)
Overtime (Section 10)
Compressed working week (Section 11)
Average of hours of work (Section 12)
Meal intervals (Section 14)
Daily and weekly rest period (Section 15)
Pay for work on Sundays (Section 16)
Night work (Section 17(2))
Public holidays (Section 18)
For purposes of determining whether an employee earns in excess of the earnings threshold, “earnings” means the regular annual 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. Subsistence and transport allowances received, achievement awards and payments for overtime worked, are not regarded as remuneration for the purpose of this notice.
Please contact our Labour Relations Manager Gerhard Olivier should you have any queries in this regard.
