Attorneys West & Rossouw

Employers and Employees Take Note: New Earnings Threshold from 1 April 2025

From 1 April 2025, the earnings threshold under the Basic Conditions of Employment Act (BCEA) will increase, impacting not only the BCEA but also employee protections under the Labour Relations Act (LRA) and Employment Equity Act (EEA). 

Broadly speaking, employees earning less than the threshold amount are entitled to stronger labour protections.

The new threshold 

The threshold rises by only 2.9% this year, increasing from R254,371.67 per year (R21,197.64 per month) to R261,748.45 per year (R21,812.37 per month).

What counts as “Earnings”?

“Earnings” (for this purpose only) 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”.

The impact on employee protections 
Exceptions to the BCEA protections

Some employees have limited BCEA protection regardless of their earnings, including:

Please ask us for specific advice if you need it. This article is merely an overview of a complex topic with many pitfalls for the unwary.

Disclaimer: The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact us for specific and detailed advice.

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