No increase in the BCEA earnings threshold on 1 July 2015

bowman-gilfillanThe earnings threshold published in terms of the Basic Conditions of Employment Act (BCEA) is currently R205,433.30 per annum. Employees who earn below this threshold amount are entitled to the protection of the working hour provisions of the BCEA. The amendments to the Labour Relations Act, which took effect on 1 January 2015, extend protection to employees engaged in a-typical forms of employment (namely employees employed in terms of fixed term or part time contracts of employment and employees provided to clients by labour brokers) who earn below the earnings threshold.

Over the past couple of years, the earnings threshold was increased every year on 1 July. We have been informed by the Department of Labour that, because of the far-reaching impact of the threshold on a-typical forms of employment, a decision was taken that there will not be an increase in the earnings threshold this year on 1 July, and that the status quo will accordingly remain. The earnings threshold will therefore remain at R205,433.30 per annum for the time being. 

Bowman Gilfillan Africa Group

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