The Minister of Employment and Labour published Government Notice 54544, increasing the Basic Conditions of Employment Act (BCEA) earnings threshold from R261 748.45 pper annum to R269 600.90 per annum effective 1 May 2026.
Download the gazette: BCEA Earnings Threshold Effective 1 May 2026.pdf
Therefore, effective 1 May 2026, employees earning in excess of R269 600,90 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 the purpose of this notice, “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 as any payment in money or in 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 affects payments to employees, and doesn't affect the Unemployment Insurance Fund (UIF) monthly limit. The UIF limit remains R17 712.00per month as from 1 June 2021 - Don't change the limit in your payroll.
