The earnings threshold (“threshold“) in terms of the Basic Conditions of Employment Act 75 of 1997 (“BCEA“) is currently R205,433.30 per annum. This amount is typically increased each year on the 1st of July. The Department of Labour has, however, indicated that there will be no increase of the threshold this year.
Employees who earn below the threshold are afforded certain rights under the BCEA, such as the right to overtime pay and additional compensation for working on Sundays and Public Holidays. Employees who earn below the threshold who are on fixed-term or part-time contracts or who are procured by temporary employment services are also protected in terms of the LRA.