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The Minister of Employment and Labour has issued a determination in terms of section 6(3) of the Basic Conditions of Employment Act, 75 of 1997 (“BCEA“) in terms of which the annual earnings threshold will increase from R211 596.30 per annum to R224 080.48 per annum (or R18 673.37 per month) as of 1 March 2022.

Employees earning above this threshold are excluded from certain sections of the BCEA, which address: ordinary hours of work; overtime; compressed working week; averaging of hours of work; meal intervals; daily and weekly rest periods; and compensation for work performed on Sundays, at night or on public holidays.

“Earnings” means an employee’s regular annual remuneration before deductions for PAYE, retirement fund contributions, medical aid contributions but excludes the similar contributions made by the employer in respect of the employee. Overtime, subsistence and transport allowances do not fall within the ambit of remuneration.

Certain provisions of the Labour Relations Act, 66 of 1995 which extend additional protection to atypical forms of employment (fixed term, part time and labour broker employees) are only applicable to employees who earn below the earnings threshold.

In terms of the Employment Equity Act, 55 of 1998 an employee earning in excess of the earnings threshold is not permitted to refer an alleged unfair discrimination dispute to the CCMA for arbitration (unless the dispute relates to alleged sexual harassment or the parties agree to arbitration) and is obliged to refer the dispute to the Labour Court for adjudication.

Should you require any more information, please contact  Melanie Hart at melanie@bv-inc.co.za.