Section 6 of the Basic Conditions of Employment Act makes provision for the Minister of Employment and Labour to determine an earnings threshold.

The effect of such threshold is that it excludes employees earning above the determined amount from the protection offered to employees under certain sections of chapter 2 of the Act. Chapter 2 of the BCEA primarily deals with the regulation of working hours of employees.

Additionally, as per sections 198, 198 A, B, C and D of the Labour Relations Act, employees earning below the earnings threshold are considered to be vulnerable and are entitled to additional protection pertaining to non-standard employment arrangements such as fixed term contracts, labour broker and part-time employees.

As from the 1st of APRIL 2025, the earnings threshold will be increased from R254371.67 (R21197.63 per month) to R261748.45 (R21812.37per month).

“Earnings” means gross pay before deductions, such as income tax, pension, medical insurance, and similar payments, but excludes similar payments (contributions) made by the employer in respect of the employee.

The sections of the Basic Conditions of Employment Act from which such employees are excluded are:

• Ordinary hours of work
• Overtime
• Compressed working week
• Averaging of hours of work
• Meal intervals
• Daily and weekly rest period
• Pay for work on Sundays
• Night work -17(2) that deals with transport and night shift allowances
• Public holidays – 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.

Employees earning below the threshold amount:

Such employees are entitled to the full protection of every section of the Basic Conditions of Employment Act (BCEA). Additionally, such employees are also considered to be vulnerable for the purposes of non-standard employment arrangements as per the Labour Relations Act.

Employees earning above the threshold amount:

Employees earning above the threshold amount do not have a statutory right to demand minimum employment conditions insofar as it relates to the provisions of sections 9, 10, 11, 12, 14, 15, 16, 17(2), and 18(3) of the BCEA. Employment conditions dealt with under the aforementioned sections may be negotiated between employer and employee. The agreed employment conditions may well be less favourable than those applicable to employees earning below the threshold.

Click here to download the Earnings Threshold for 2025

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Written by Jan du Toit, Labour Guide