The Earnings Threshold prescribed by the Basic Conditions of Employment Act will increase on 1 July 2012 from R172 000 per annum to R183 008 per annum. Effectively this means that employees who earn above this threshold is exempted from the provisions of the quoted sections, which include the obligation to pay overtime.
GOVERNMENT NOTICE, DEPARTMENT OF LABOUR, BASIC CONDITIONS OF EMPLOYMENT ACT, 1997, DETERMINATION: EARNINGS THRESHOLD
No.35404, 1 June 2012
Nelisiwe Mildred Oliphant, Minister of Labour, in terms of Section 6(3) of the Basic Conditions of Employment Act, No. 75 of 1997, (the Act), determine that all employees earning in excess of R183 008.00 (one hundred and eighty three thousand and eight rand) per annum be excluded from sections 9, 10, 11, 12, 14, 15, 16, 17(2), 18(3) of the Act with effect from 1 July 2012.
For the purposes of this notice:
“Earnings” means the regular annual remuneration before deductions, i.e. income tax, pension, medical and similar payments but excluding similar payments (contributions) made by the employer in respect of the employee: Provided that subsistence and transport allowances received, achievement awards and payments for overtime worked shall not be regarded as remuneration for the purpose of this notice.
N M OLIPHANT, MP
MINISTER OF LABOUR