Effective 1 May 2026
Employees who earn above a prescribed annual amount, referred to as the earnings threshold, are not afforded the same level of protection under South African labour legislation as employees who earn below this amount.
Increase in the earnings threshold
From time to time, the earnings threshold is determined by the Minister of Employment and Labour in terms of the Basic Conditions of Employment Act, 1997 (BCEA). With effect from 1 May 2026, the threshold has been increased by 3% to R269 600,90 per annum, which equates to R22 466,74 per month.
Impact of the earnings threshold
Employees who earn more than the new threshold are excluded from the limitations, protections, and entitlement to additional remuneration provided for in certain sections of the BCEA.
These sections include:
- Section 9 – Ordinary hours of work
- Section 10 – Overtime
- Section 11 – Compressed working week
- Section 12 – Averaging of hours of work
- Section 14 – Meal intervals
- Section 15 – Daily and weekly rest periods
- Section 16 – Compensation for work performed on Sundays
- Section 17(2) – Night work
- Section 18(3) – Public holidays on which the employee would not normally be required to work
For further information, please contact your BVPD Consultant.
