The Department of Employment and Labour (“DEL”) has recently implemented adjustments to both the Basic Conditions of Employment Act ("BCEA") earnings threshold and the national minimum wage.
On 4 February 2025, the DEL implemented an increase in the national minimum wage of approximately 4,3%, from R27.58 to R28.79. This increase was effective from 1 March 2025 and is applicable to all employees (except those mentioned below), including farm workers and domestic workers.
The national minimum wage for workers employed on an expanded public works programme have also had their national minimum wage increased from R15.16 to R15.83 per hour. Similarly, workers engaged through learnerships in terms of the Skills Development Act 97 of 1998, have had their allowances increased to between R433.33 to R2, 527.66 (depending on the learner's credits and NQF level, as set out in Schedule 2 of the government gazette).
Employers who employ employees at the national minimum wage, are urged to review their employees' wages to ensure compliance with the above-mentioned increased wage or apply for an exemption where such wages cannot be met.
On 7 March 2025, the DEL published a government gazette providing for an increase in the earnings threshold in terms of section 6(3) of the Basic Conditions of Employment Act 75 of 1997 (“BCEA”) from R254,371.67 per annum to R261,748.45 per annum (being R21,812.37 per month). This increase will take effect from 1 April 2025 and represents a 2,9% increase from the previous threshold.
The BCEA earnings threshold determines which employees are excluded from certain protections provided for by the BCEA, such as limitations on working hours and the entitlement to overtime pay, as well as certain protections provided for by the Labour Relations Act 66 of 1995 (“LRA”).
For those employers who pay employees at or around the earnings threshold, it is necessary for such employers to review their employees’ remuneration and to evaluate whether certain of its employees will now fall below the new earnings threshold.
If employees earn below the earnings threshold, employers must be aware that such employees are now entitled to additional basic conditions of employment such as the payment of overtime, limited working and overtime hours, daily and weekly rest time, meal intervals and additional pay for work on Saturdays, Sundays and public holidays.
Additionally, there is a significant consequence in terms of the LRA in respect of employees who earn below the earnings threshold and who are employed on a fixed term or part-time basis as well as in respect of those who are employed by temporary employment service providers, also known as labour brokers.
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