BRENTWOOD

2024-03-06

New earnings threshold effective 1 April 2024

The annual Earnings Threshold has been increased to R254 371.67, as of 01 April 2024.

The threshold affects the Basic Conditions of Employment Act, Labour Relations Act, and the Employment Equity Act. The current threshold of R241 110.59 per annum (R20 092.54 per month) is increased to R254 371.67 (R21 197.63 per month).

Basic Conditions of Employment Act: Employees earning in excess of that threshold are excluded from the Act’s provisions of on:
- ordinary hours of work,
- overtime,
- compressed working weeks,
- averaging of hours of work,
- meal intervals,
- daily and weekly rest periods,
- Sunday pay,
- pay for night work and
- pay for work on public holidays.

Labour Relations Act: Employees earning in excess of the earnings threshold:
- employed by a Labour Broker (Temporary Employment Service) cannot be deemed to be an employee of the client.
- Employees are not considered permanent employees after 3 months employment on a Limited Duration Contract of Employment.

Employment Equity Act: Employees earning in excess of the earnings threshold:
- Cannot have the CCMA arbitrated discrimination dispute. The Labour Court has jurisdiction, unless the dispute relates sexual harassment, or the parties all agree to arbitration.

“earnings”:
- Includes an employee’s regular annual remuneration before the deduction of income tax, pension fund contributions, medical aid contributions and similar payments,
- Excludes employer contributions to pension fund, medical aid payments and similar contributions.
- Subsistence and transport allowances received, achievement awards and payments for overtime worked is not included in the earnings calculation.

Source: Government Gazette no 50254 (5 March 2024) Basic Conditions of Employment Act (75/1997): Determination: Earnings Threshold.