media statement by...
THE DEPARTMENT OF LABOUR
Department of Labour sets earnings threshold
13 March 2003

The Department of Labour will announce tomorrow [Friday 14 March 2003] that the earnings threshold set by the Basic Conditions of Employment Act will be increased as from 24 March 2003. This announcement is part of the Department’s ongoing commitment to the protection of vulnerable workers.

The earnings threshold is the wage level above which workers are excluded from the provisions of the BCEA relating to the payment of overtime.

From implementation workers earning more than R115 572,00 per annum no longer are guaranteed overtime pay by the BCEA. Any agreement regarding such pay must be reached between the employer and the worker.

The new threshold represents R16 117,00 [R26 117.00] per annum increase on the old threshold level.

The following categories of employees remain excluded from these overtime provisions:

• senior managerial workers;
• workers engaged as sales staff who travel to the premises of customers and who regulate their own hours of work;
•  workers who work less than 24 hours a month for an employer.

This new level, together with a definition of what constitutes earnings for the purposes of the BCEA, will be published in the Government Gazette of 14 March 2003.

ENDS

Issued by: The Chief Directorate of Communication
Department of Labour

Enquiries: Snuki Zikalala
082 809 3195

NO. 356 14 March 2003

I, Membathisi Mphumzi Shepherd Mdladlana, Minister of Labour, in terms of Section 6(3) of the Basic Conditions of Employment Act, No 75 of 1997 (the Act), determine all employees earning in excess of R115 572,00 per annum be excluded from sections 9, 10, 11, 12, 13, 14, 15, 16, 17 and 18(3) of the Act and fix the second Monday after the date of publication of this notice as the date from which the said determination shall be binding.

For the purposes of this notice:

Earnings means gross pay 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."

MINISTER OF LABOUR