Earnings threshold

Earnings threshold

Podcast

Earnings threshold

Podcast

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Sashin explains that the Minister of Employment and Labour routinely sets the earning threshold, which currently stands at about R254,371.67 (roughly R21K per month before tax and deductions). The earning threshold signifies, according to regulations, that when an employee earns above this threshold per annum, they would be excluded from certain provisions under our employment laws. These provisions, under the Basic Conditions of Employment Act, offer protections to employees deemed vulnerable due to lower annual earnings.

Sashin adds that the protections outlined in the Basic Conditions of Employment Act include provisions regarding 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. These provisions only apply to employees earning below the threshold in the public and private sectors, unless they are specifically included in an employee's contract of employment, a collective agreement or a sectoral determination.

Sashin mentions that the Minister has somewhat kept pace with the current dynamics of the economic climate with the recent threshold having been increased by just over R13K. Additionally, Sashin points out that in the event of disputes, employees earning below the threshold may have access to the Commission for Conciliation, Mediation, and Arbitration (CCMA) to resolve disputes, rather than through the Labour Court. However, employees earning above the threshold are not allowed to refer disputes related to unfair discrimination to the CCMA for arbitration unless it relates to sexual harassment, or all parties agree to arbitration. Such cases must be handled by the Labour Court.