The following is the News flash 2023-06 published by the PAGSA on February 21, 2023 regarding the BCEA Earning threshold increase

BASIC CONDITIONS OF EMPLOYMENT ACT: EARNINGS THRESHOLD INCREASE

The Basic Conditions of Employment Act (BCEA) is a South African legislation that sets out the minimum employment conditions for workers in the country. It covers various aspects such as working hours, leave, remuneration, and termination of employment.

One important aspect of the BCEA is the earnings threshold, which determines whether an employee is entitled to certain benefits and protections under the Act. The Minister of Employment and Labour has the authority to adjust this threshold from time to time.

On 20 February 2023, the Minister issued Government Gazette Number 48092 to increase the BCEA earnings threshold. This means that employees who earn below a certain amount are considered to be covered by the Act, while those who earn above this threshold may not be entitled to certain benefits.

The new earnings threshold, effective from 1 March 2023, is set at R241,110.59 per annum. This is an increase from the previous threshold of R224,080.48 per annum.

It is important to note that the concept of ‘BCEA earnings’ remains unchanged. The definition of BCEA earnings is provided in the notice issued by the Minister and is specifically used for the application of this threshold. In simple terms, BCEA earnings refer to remuneration as defined by the BCEA, but excluding achievement awards such as commission, bonuses, and overtime.

This information is provided by the Payroll Authors Group of South Africa (PAGSA), represented by Chairman Rob Cooper. It is important to note that all information provided by PAGSA is subject to their disclaimer.

In summary, the Basic Conditions of Employment Act (BCEA) is a legislation that sets out the minimum employment conditions in South Africa. The earnings threshold, which determines the coverage of the Act, has been increased to R241,110.59 per annum, effective from 1 March 2023. BCEA earnings refer to remuneration as defined by the BCEA, excluding achievement awards and overtime.