By: Michelle Naidoo | Partner | Mooney Ford Attorneys
Two important developments in labour legislation which shall be in force with effect from 1 March 2023:
1. BCEA earnings threshold increase
Effective 1 March 2023, the new earnings threshold in terms of the Basic Conditions of Employment Act (BCEA) shall be R241 110.59 per annum (approximately R20 092.55 per month). The threshold has increased by approximately R17 000.00 per annum. Employees earning above the threshold are excluded from certain rights and entitlements in terms of the BCEA.
Employees earning over the threshold are not entitled to be paid for overtime work or to receive any additional compensation for working on Sundays, at night, or on public holidays. The hours of work of employees who earn over the threshold are not regulated by the BCEA. This means that the maximum number of ordinary hours of work prescribed in the BCEA, (45hours per week) and overtime hours (10hours per week), do not apply to employees who earn over the threshold.
2. Minimum wage increase
Effective 1 March 2023, the new national minimum wage rates shall be:
i. R25.42 per hour (applicable generally and applicable to farm workers and domestic workers);
ii. R228.78 per day (9 hours of work);
iii. R1 143.90 per week;
iv. R4 956.52 per month.
Employers that do not comply with the national minimum wage face the risk of hefty fines being imposed by the Department of Labour and/or adverse awards being made against non-complying enterprises to enforce compliance and for back pay.