The Department of Employment and Labour (DEL) has adjusted the earnings threshold that applies to the Basic Conditions of Employment Act (BCEA).
The change means any workers whose salaries have increased beyond R22,467 a month in 2026 will lose certain automatic protections.
The earnings threshold is the level at which workers in South Africa lose automatic protections under the BCEA related to things like ordinary hours of work, overtime and pay on public holidays.
It also has implications for provisions under the Labour Relations Act (LRA) and Employment Equity Act (EEA).
From 1 May 2026, the new threshold will be R269,601 – an increase of R7,853 from the 2025 earnings threshold of R261,748 (+3%).
The threshold equates to just under R22,467 per month, up from R22,100 in 2025.
According to legal experts, employees who earn above the threshold are not entitled to the protections afforded to workers who earn below it.
In terms of the BCEA, employees earning above the threshold are excluded from the provisions of the BCEA, which regulate:
- Ordinary hours of work;
- Overtime;
- Compressed working weeks;
- Averaging of hours of work;
- Meal intervals;
- Daily and weekly rest periods;
- Sunday pay;
- Pay for night work; and
- Pay for work on public holidays.
These provisions only apply to employees earning below the threshold.
In the Employment Equity Act, employees earning above the threshold are also not allowed to refer disputes relating to unfair discrimination to the CCMA for arbitration.
The exceptions are disputes related to sexual harassment or those in which all parties agree to arbitration. Typically, those earning above the threshold must have disputes handled by the Labour Court.
Notably, the increase in the earnings threshold may also result in more employees becoming entitled to the stricter protections afforded by labour legislation, such as overtime payments.
This may, in turn, have financial consequences for employers.
For purposes of determining whether an employee earns in excess of the earnings threshold, “earnings” means an employee’s regular annual remuneration:
- Before the deduction of income tax;
- Before the deduction of pension fund contributions;
- Before the deduction of medical aid contributions and similar payments;
- Excluding similar contributions made by the employer in respect of the employee.
This is subject to the proviso that subsistence and transport allowances received, achievement awards and payments for overtime worked do not fall within the scope of remuneration.
