COMPENSATION FUND: EARNINGS THRESHOLD FOR 2025/2026 YEAR OF ASSESSMENT

The Minister of Employment and Labour has confusingly issued several Government Gazettes with the same date of signature by the Minister (31 March 2025) but that that seem to overlap one another.

Government Gazette number 52607 dated 9 May 2025 (Issued in May 2025):
For the first time, this Gazette prescribed a Minimum Earnings Threshold (R88 688) together with the normal Maximum Earnings Threshold (R633 168) for the 2025/2026 year of assessment (that starts from 1 March 2025).

The concept of a Minimum Earnings Threshold is not referred to in the COID Act, nor in any Regulation.

Since then, the PAGSA has queried this new requirement several times with the Compensation Fund, but at the time of issuing this Newsflash, no direct response had been received, even though our queries were taken forward by the Fund to the relevant people at the Department of Employment and Labour.

Government Gazette number 52453 dated 4 April 2025 (Issued in June 2025):
On 5 June 2025, Government Gazette No. 52453 was posted on the Government portal.
It returns to the format that we have become accustomed to over the years.
Of importance is that it does not include a Minimum Earnings Threshold.
This Gazette was issued early in June (no doubt in response to our earlier queries regarding the Minimum Earnings Threshold), but with a Gazette number of 52453 (an earlier number than the 52607 Gazette issued in May 2025) that is the same Gazette number as was issued in April 2025.

This is confusing, to say the least.

The latest Gazette No. 52453 now prescribes the following information:
a) The amount of R633 168 per employee per annum as the maximum amount of earnings on which an assessment of an employer shall be calculated; this amount being effective from 1st March 2025.
b) A Minimum Assessment of R1 621 for employers with effect 1st March 2025.
c) A Minimum Assessment of R560 for household/domestic employers with effect from 1st march 2025.

To repeat, the Minimum Earnings Threshold seems to have disappeared into the mists of time …