On 17 April 2026, the Minister of Employment and Labour published a new national earnings threshold in terms of the Basic Conditions of Employment Act (BCEA) under Government Gazette No. 54544. The updated threshold, effective from 1 May 2026, increases to R269,600.90 per annum (approximately R22,466.74 per month). This adjustment has important implications for the application of certain statutory protections under the BCEA and requires careful consideration by both employers and employees.
Background to the Threshold Increase
The BCEA earnings threshold is periodically reviewed to account for economic conditions and labour market trends. It serves as a dividing line that determines which employees are automatically entitled to specific protections under the Act, particularly those regulating working time. Employees earning above the threshold are regarded as higher earners and are therefore excluded from certain provisions, on the basis that their working conditions are typically regulated through individual agreements rather than statutory minimums.
Key Legal Position and Exclusions
Employees earning above the new threshold are typically excluded from the application of the provisions regulating:
- Ordinary working hours
- Overtime
- Meal intervals
- Daily and weekly rest periods
- Sunday work
- Night work
- Public holidays
As a result, these employees are no longer automatically entitled to statutory limitations on working hours or prescribed overtime compensation. Instead, their working conditions must be determined in accordance with their employment contracts and applicable workplace policies.
Workplace Impact and Practical Considerations
The increase in the earnings threshold has several practical implications:
- Contractual Governance: For employees earning above the threshold, employment contracts become the primary source of regulation for working hours, overtime, and rest periods. Employers should ensure that these terms are clearly defined and consistently applied.
- Policy Alignment: Workplace policies must be reviewed to ensure alignment with the new threshold and to avoid unintended gaps in employee protections.
- Dispute Resolution: The threshold may influence jurisdictional considerations, including whether certain disputes are referred to the CCMA or the Labour Court.
- Fixed-Term Contracts: The application of protections relating to fixed-term contracts may also be affected for employees earning above the threshold.
Importantly, exclusion from these BCEA provisions does not mean that employees forfeit all protections. It simply means that such protections are not automatically imposed by legislation and must instead be contractually agreed.
Practical Impact for Employers and Employees
This development underscores the need for proactive compliance and risk management. Employers should review and, where necessary, update employment contracts for employees who fall above the threshold. HR and IR practitioners must ensure that working time arrangements are clearly documented and defensible. Employees should understand how their remuneration level affects their statutory protections and contractual rights. Both parties should ensure that expectations around working hours and compensation are transparent and mutually agreed.
Looking Ahead
The increase in the BCEA earnings threshold reflects an ongoing shift towards contractual flexibility for higher-earning employees, while maintaining statutory protections for more vulnerable workers. Employers are encouraged to take this opportunity to review their employment frameworks and ensure compliance with the updated threshold.
We encourage employers, IR/HR professionals, and legal practitioners to engage with these developments and share their insights.
