South African businesses have an important compliance update to act on.
The Minister of Employment and Labour, Nomakhosazana Meth, has announced a new earnings threshold under the Basic Conditions of Employment Act (BCEA), effective 1 May 2026.
🔢 What’s Changed?
The earnings threshold has increased to:
R269,600.90 per annum
(Approximately R22,466 per month)
This is a modest increase aligned with inflation, but its impact on compliance is significant.
⚠️ Why This Matters
The BCEA earnings threshold determines which employees are entitled to certain protections related to working hours and pay.
Employees earning below the threshold:
✔ Qualify for:
- Overtime pay
- Sunday pay
- Public holiday pay
- Night work allowances
Employees earning above the threshold:
❌ Are excluded from provisions regulating:
- Ordinary working hours
- Overtime
- Compressed and averaged working hours
- Meal intervals and rest periods
- Sunday and public holiday pay
- Certain aspects of night work
🚨 What This Means for Your Business
Even though the increase is relatively small, it can shift employees into different compliance categories.
If your business doesn’t adjust accordingly, you may face:
- Underpayment risks
- Employee disputes
- Labour inspections and penalties
✅ Key Actions You Should Take Now
To stay compliant, businesses should act immediately:
📊 A Small Change with Big Impact
While this adjustment reflects inflation, it directly affects how employees must be managed, paid, and protected.
This is not just a payroll update — it’s a compliance responsibility.
🤝 Need Help?
At HR Consult, we help businesses stay compliant without the stress.
From payroll audits to contract updates and labour law support, we make sure your HR processes are aligned, practical, and legally sound.
Don’t stress — we’ve got your HR covered.
*This article is for informational purposes only and does not constitute legal advice.