You will recall that in April this year we sent an update of the impending review of the BCEA earning threshold. We also mentioned this at our seminar earlier this year.

The Minister has now announced that the threshold increases to R205 433.30 per annum (R17 119.44 per month) from the current R193 805 per annum.  The new threshold applies with effect from 1 July 2014.

Employees earning in excess of R205 433 per annum are now excluded from certain working time privileges and protections as determined in the following sections of the BCEA:

  • 9 (ordinary hours of work)
  • 10 (overtime)
  • 11 (compressed working week)
  • 12 (averaging of hours of work)
  • 14 (meal intervals)
  • 15 (daily and weekly rest period)
  • 16 (pay for work on Sundays)
  • 17.2 (night work)
  • 18.3 (public holidays)

The definition of earnings in the Determination remains unchanged and in terms of this Determination all overtime payments (not just “intermittent overtime”) remain excluded and are not taken into account in determining whether an employee earns above or below the threshold. Similarly, achievement awards (such as incentive bonuses) and subsistence and transport allowances remain excluded.