22/04/2026
BASIC CONDITIONS OF EMPLOYMENT ACT - EARNINGS THRESHOLD INCREASE FOR 2026
The earnings threshold, in terms of Section 6(3) of the Basic Conditions of Employment Act (“BCEA”), has been increased to R 269,600.90 per year (R 22 466.74 per month), with effect from 1 May 2026. The current earnings threshold is R 261,748.45 per year. This represents an increase of 3%.
The earnings threshold has the effect that the limitations or protections afforded by certain sections of the BCEA, do not apply to employees earning above the new threshold. These sections are:
- section 9 (hours of work);
- section 10 (overtime);
- section 11 (compressed working week);
- section 12 (averaging of hours);
- section 14 (meal intervals);
- section 15 (daily and weekly rest periods);
- section 16 (pay for work on Sundays)
- section 17 (2) (night work); and
- section 18 (3) (public holidays on which the employee would not ordinarily work).
For purposes of the new threshold “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, are not regarded as remuneration.
The earnings threshold also has an effect on certain other provisions of the BCEA, the Labour Relations Act (LRA), and Employment Equity Act (EEA) namely; 1) Which employees are regarded as permanent employees in terms of s198B of the LRA, 2) The ability to claim any outstanding amount due to the employee, in terms of the BCEA, the National Minimum Wage Act, a contract of employment, a sectoral determination, or a collective agreement, in the CCMA, 3) Whether unfair discrimination disputes may be referred to the CCMA, as opposed to the Labour Court, in terms of s10(6) of the EEA.
This is general information.
