Steel Industry Alert: Increase in earnings threshold

On 5 March 2024, the Minister of Employment and Labour gazetted a new earnings threshold of R254 371.67 per annum. In terms of the Basic Conditions of Employment Act (BCEA), all employees earning in excess of the earnings threshold, are excluded from the ambit of certain sections of the BCEA, which primarily deal with: 

  • ordinary hours of work;
  • overtime;
  • compressed working week;
  • averaging of hours of work;
  • determination of hours of work by Minister;
  • meal intervals;
  • daily and weekly rest period;
  • pay for work on Sundays;
  • night work (section 17(2) that deals with transport and night shift allowances); and
  • public holidays (section 18(3) that deals with payment for work on a public holiday that falls on a day on which the employee would ordinarily not have worked).

All employees earning under the threshold amount have the full protection of every section of the BCEA. The new earnings threshold will come into effect from 1 April 2024.

To view the determination in the Gazette, click here.