NATIONAL NEWS - A significant update to South Africa’s labour legislation has been announced, with the Minister of Employment and Labour, Nomakhosazana Meth, gazetting a new earnings threshold under the Basic Conditions of Employment Act.

Published in the Government Gazette on 7 March, the new threshold of R261 748,45 per annum will take effect tomorrow, 1 April.

This adjustment marks an increase from the previous threshold and has far-reaching implications for both employers and employees across the country.

What’s changing?
The BCEA sets out fundamental protections for workers, including limits on working hours, overtime regulations, meal intervals, rest periods, and additional pay for work on Sundays, night shifts, and public holidays.

Under Section 6(3) of the Act, employees earning above the specified threshold are excluded from certain provisions.

The new threshold, approximately R21 812 per month, replaces the previous limit, meaning employees earning above this amount will no longer be entitled to these protections.

The affected sections include:

• Section 9: Limits ordinary working hours to 45 hours per week and 9 hours per day (or 8 hours if working more than five days a week).
• Section 10: Regulates overtime, capping it at 3 hours per day or 10 hours per week, and mandates a minimum of 1,5 times the normal wage for overtime work.
• Section 11: Allows for a compressed working week of up to 12 hours per day without overtime pay, provided weekly hours do not exceed 45.
• Section 12: Permits averaging of hours over a four-month period under a collective agreement, with limits on average weekly hours.
• Section 14: Mandates a one-hour meal interval after five continuous hours of work.
• Section 15: Requires a daily rest period of 12 hours and a weekly rest period of 36 hours.
• Section 16: Stipulates double pay for Sunday work (or 1.5 times for regular Sunday workers).
• Section 17(2): Requires agreements for night work (between 18:00 and 06:00), with compensation or reduced hours and transport provisions.
• Section 18(3): Sets pay requirements for public holiday work when the employee would not ordinarily work.

Implications for employees
For employees earning above R261 748,45 annually, the exclusion from these sections means greater flexibility for employers in scheduling work hours and fewer mandatory protections. These workers may now face longer hours, reduced rest periods, and no guaranteed premium pay for overtime, Sundays, or public holidays unless negotiated in their contracts.

Labor experts suggest this could disproportionately affect mid-level professionals, such as supervisors, junior managers, and skilled technicians, whose salaries often fall just above the threshold.

Implications for employers
For businesses, the raised threshold provides more operational flexibility, particularly in industries requiring extended hours or irregular schedules, such as retail, hospitality, and manufacturing.

Employers will no longer need to adhere to strict overtime limits or provide mandatory rest periods for employees above the threshold, potentially reducing labour costs. However, this could also lead to dissatisfaction among workers, prompting calls for stronger individual or collective bargaining agreements.

The adjustment reflects inflationary pressures and aligns the threshold with current economic realities. The previous threshold, last updated in 2023, was R241 110,59, and the new figure represents an increase of approximately 8,5%, keeping pace with wage growth and cost-of-living adjustments.

Broader context and reactions
The announcement come amid ongoing debates about worker rights and economic productivity in South Africa.

Looking ahead
As the new threshold takes effect on 1 April, both employers and employees will need to reassess employment contracts and workplace policies. Employees earning close to the threshold may seek salary adjustments to remain below it and retain BCEA protections, while employers might recalibrate staffing models to optimize costs.

Ascertain whether an employee earns above or below R261 748,45 annually could also spark disputes or require clarification in some cases.

The update to the BCEA underscores the ongoing tension between labour rights and economic demands in South Africa, setting the stage for further discussion as the implementation date approaches. 

For now, the change signals a shift toward greater employer discretion, with the full impact to be felt in workplaces nationwide starting tomorrow.

(This report was compiled from the Government Gazette with the help of AI.) 

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