Increase in the BCEA Earnings Threshold
As per the recent government gazette notice (No. 52232, dated 7 March 2025 – attached), the Minister of Employment and Labour has determined a new BCEA Earnings Threshold. Effective from 1 April 2025, the threshold has been set at R261,748.45 per annum.
Key points to note:
- Applicability: This threshold applies to all non-scheduled employees (i.e. those not covered by the Main Agreement) earning in excess of the stated amount.
- Exclusions: Employees earning above this threshold will be excluded from sections 9, 10, 11, 12, 14, 15, 16, 17(2) and 18(3) of the BCEA.
- Definition of Earnings: For this purpose, “earnings” refers to regular annual remuneration before deductions (e.g., income tax, pension, medical payments). However, it excludes similar contributions made by the employer, as well as subsistence and transport allowances, achievement awards, and overtime payments.
This adjustment may have implications for your operations and compliance requirements. Please contact us should you have any queries.
