The Minister of Labour has published a Government Notice in terms of section 6(3) of the Basic Conditions of Employment Act 75 of 1997 (BCEA) amending the earnings threshold from R172,000 to R183,000 (threshold). This adjustment to the threshold comes in less than a period of one year after the previous amendment.
For purposes of the threshold, "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.
Accordingly, with effect from 1 July 2012, employees earning above the threshold will not (unless by agreement between the parties) be entitled to the full protections and benefits derived from the BCEA dealing with ordinary hours of work, overtime, compressed working week, averaging of hours of work, meal intervals, daily and weekly rest periods, pay for work on Sundays, night work and work on public holidays. An employee earning below the threshold will, for example, be entitled to payment for overtime worked; and for work performed on Sundays and on a public holiday on which the employee would ordinarily not be required to work.