New earnings threshold effective 1 March 2023
As of 1 March 2023, South Africans will see the implementation of the increased annual earnings threshold determined by the Minister of Employment and Labour (Minister)
The current Earning Threshold of R224,080.48 per annum has been increased to R241,110.59 (which works out to be R20 092.55 per month)
Employees who earn above this amount shall from 1 March 2023 be excluded from stipulated sections of the Basic conditions of Employment Act No 75 of 1997and applicable Sectoral Determination
New national Minimum wage
- The new wage shall be R25.42 for each ordinary hour worked.
- The rate is also applicable to farm workers and domestic workers
Earnings referred to in the gazette is defined as 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.
Employees earning under this threshold enjoy the full protection of the BCEA, and can, for example, demand overtime pay at a rate of 1.5 times, or legally refuse to do more than the 45 hours of work a week.
However, any employees earning above the threshold are precluded from these automatic protections – meaning they are not automatically entitled to overtime or weekends off, for example.
These issues are still relevant to higher earners, but are typically handled in contract negotiations with respective employers at the time of employment.
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