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Increase in Earnings Threshold BCEA & Change in Definition of "Earnings"

 

Please note that there is a change to the definition of earnings, and that overtime payments are no longer included in the definition of "earnings", so employees will not go above the threshold based on their overtime earnings.

 GOVERNMENT NOTICE

        DEPARTMENT OF LABOUR

       No. R. 422

        13 May 2011

        BASIC CONDITIONS OF EMPLOYMENT ACT, 1997 DETERMINATION: EARNINGS THRESHOLD

   

    I, Mildred Nelisiwe Oliphant, Minister of Labour, in terms of Section

6(3) of the Basic Conditions of Employment Act, No. 75 of 1997, (the Act),

determine that all employees earning in excess of R172 000 (one hundred and

seventy two thousand rand) per annum be excluded from sections 9, 10, 11,

12, 14, 15, 16, 17(2), 18(3) of the Act with effect from 1 July 2011.

   

    For the purposes 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 for the purpose of this notice.

   

    This determination replaces the determination published under

Government Notice R 300 in Government Gazette No 30872 on 14 March 2008.

   

    (Signed)

    M N OLIPHANT, MP

    MINISTER OF LABOUR

    3/5/2011

 

Views: 245

Tags: BCEA, deductions, earnings, hours, increase, overtime, remuneration, subsistence, threshold, transport

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