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.
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.
M N OLIPHANT, MP
MINISTER OF LABOUR