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BCEA: Overtime earning threshold raised

BCEA EARNINGS THRESHOLD RAISED FROM R149 736 TO R172 000

The Minister of Labour, M N Oliphant, announced on 13 May 2011 that the Earnings Threshold* determined under the Basic Conditions of Employment Act, 1997, has been raised from R149 736 to R172 000 per annum with effect from 1 July 2011. (Government Gazette No 342873)

“The effect of this increase means that employees earning below the new threshold of R172 000 p.a. or R14 333.33 p.m will be entitled to be remunerated for overtime, work on Public Holidays and Sundays.”

The Minister has alerted employers to the fact that employees earning above the previous threshold of R149 730 but below the new one of R172 000 should be aware that these employees will now be entitled to the above entitlement.

Should they not comply, employers could end up with multiple and backdated claims which will have a significant cost implication. At the same time, the possibility exists that an employee could bring a contractual claim to the Labour Court for non payment.

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