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South Africa: BCEA earnings threshold increase effective 1 April 2024

The Minister of Employment and Labour published Government Notice 50254, increasing the BCEA earnings threshold from R241 110.59 per annum to R254 371.67 per annum effective 1 April 2024.

 Download the gazette: 1157.BCEA Earnings Threshold 1 April 2024.pdf

 Therefore, effective  1 April 2024, employees earning over R254 371.67 per annum are excluded from sections 9 (ordinary hours of work), 10 (overtime), 11 (compressed working week), 12 (averaging of hours of work), 14 (meal intervals), 15 (daily and weekly rest period), 16 (pay for work on Sundays), 17(2) (night work) and 18(3) (public holidays not ordinarily worked) of the BCEA.

 For this, “earnings” means the regular annual remuneration before deductions i.e. income tax, pension, medical, and similar payments but excluding similar payments (contributions) made by the employer in respect of the employee: Provided that subsistence and transport allowances received, achievement awards and payments for overtime worked shall not be regarded as remuneration.

 “Remuneration” is defined in the BCEA (Basic Conditions of Employment Act) as any payment in money or kind, or both in money and in kind, made or owing to any person in return for that person working.

 Take note: The BCEA threshold increase does not affect the UIF monthly limit (still R17 712 per month as of 1 June 2021), and should not be changed in your payroll .

Sharon: AME Country Lead