BASIC CONDITIONS OF EMPLOYMENT ACT 75 OF 1997 : ANNUAL EARNINGS THRESHOLD INCREASE FOR 2023
- Posted by F&P
- On 25 February 2023
- 0 Comments
- 2023, BCEA, threshold
With effect from 1 March 2023 the amended earnings threshold has been increased by the Minister from R224 080.48 (TWO HUNDRED AND TWENTY-FOUR THOUSAND AND EIGHTY RAND AND FORTY-EIGHT CENTS) per annum to R241 110.59 (TWO HUNDRED AND FORTY ONE THOUSAND ONE HUNDRED AND TEN THOUSAND AND FIFTY NINE CENTS).
The effect of the increase is that employees earning in excess of this threshold amount are excluded from relying on the protection offered by sections 9, 10, 11, 12, 14, 15, 16, 17 (2) and 18 (3) of the Basic Conditions of Employment Act.
For the purpose of this determination the reference to “earnings” has a specific meaning:
““Earnings” means 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: Provided that subsistence and transport allowances received, achievement awards and payments for overtime worked shall not be regarded as remuneration for the purpose of this notice.”
The definition of earnings has remained unchanged from the previous year.
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THIS UPDATE DOES NOT CONSTITUTE LEGAL ADVICE AND DOES NOT PURPORT TO BE A DETAILED OR COMPLETE EXPLANATION OF THE SUBJECT MATTER. SHOULD YOU REQUIRE LEGAL ADVICE OR WISH TO TAKE STEPS IN RESPONSE TO THIS SUMMARY, YOU ARE ADVISED TO CONTACT A QUALIFIED PROFESSIONAL.

