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New BCEA earnings threshold from 1 March 2021

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New BCEA earnings threshold from 1 March 2021

22nd February 2021

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The Department of Employment and Labour (DEL) has published a new earnings threshold under the Basic Conditions of Employment Act 75 of 1997 (BCEA). The new earnings threshold will take effect from 1 March 2021. The earnings threshold was last amended 7 years ago on 1 July 2014.

The table below summarises the new change to the earnings threshold –

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Section 6 of the BCEA empowers the Minister of Employment & Labour to publish an earnings threshold that will exclude employees who earn above that amount from certain sections of the BCEA as follows –

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The following sections of the Labour Relations Act 66 of 1995 apply to employees earning below the earnings threshold –

It is important for employers to assess whether employees previously exc​luded from the application of the applicable sections of the LRA and/or BCEA as set out above now fall under these sections.  This may have significant financial consequences for an employer.​

Written by Kirsten Eiser, Nivaani Moodley, Shane Johnson from Webber Wentzel

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