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New BCEA earnings threshold
- 07 March 2024
- Legal and Regulatory
- South African Accounting Academy
All employees earning in excess of R254 371,67 per annum is excluded from certain sections of the BCEA.
The new determination affects ordinary hours of work (section 9), overtime (section 10), compressed working weeks (section 11), averaging hours of work (section 12), meal intervals (section 14), daily and weekly rest periods (section 15), pay for work on Sundays (section 16), pay for night work (section 17(2)) and pay for public holidays where the employee works on a day he/she would not ordinarily work (section 18(3)).
The earnings threshold is the ‘dividing line’ where certain provisions of the Labour Relations Act (LRA) and the Employment Equity Act (EEA) apply.
The previous earnings threshold was a gross income of R241 110,59 a year.
The increase in the threshold will mean that from 1 April 2024, some employees who earn more than R241 110,59 but less than R254 371,67 per year may be entitled to additional protections, such as overtime payment when working more than 45 hours per week, compulsory breaks and rest periods, night work allowances and the like.
Click here to access the Government Gazette Notice:
http://www.gpwonline.co.za/Documents/Government/50254%205-3%20EmploymentLabour.pdf
Relevance to Auditors, Independent Reviewers & Accountants:
- The BCEA is yet another piece of legislation that your clients must comply with, and which you must assess compliance with. If they don’t comply with the relevant laws and regulations, you have certain reporting obligations in terms of NOCLAR (NOn-Compliance with Laws And Regulations) – this could include reporting to management, qualifying your audit opinion, reporting a Reportable Irregularity, etc.
- As an employer, you also need to comply with the BCEA in your workplace.
Relevance to Your clients:
- An entity (company or close corporation) has a duty to comply with the Basic Conditions of Employment Act, otherwise they could be held liable.
- An employer has a duty to comply with the BCEA.