Basic Conditions of Employment Act (BCEA), in terms of Section 6(3) of Act No. 75 of 1997 published in Government Gazette No. 52232 on 7 March 2025, affects all employers and employees across South Africa and is effective from 1 April 2025.

Basic Conditions of Employment Act

All employees earning in excess of R261,748.45 per annum (approximately R21,812.37 per month) are now excluded from the following sections of the BCEA:

Section 9: Ordinary hours of work

Section 10: Overtime pay

Section 11: Compressed working weeks

Section 12: Averaging of working hours

Section 14: Meal intervals

Section 15: Daily and weekly rest periods

Section 16: Pay for work on Sundays

Section 17(2): Compensation for night work

Section 18(3): Payment for public holidays not ordinarily worked

“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.

Why This Matters for Employers and Employees

The earnings threshold determines which employees are entitled to protection from standard working conditions. It also has implications under other laws, such as the Labour Relations Act and Employment Equity Act, particularly in relation to dispute resolution and equal treatment.

Employers must ensure that employment contracts and internal policies reflect the updated earnings threshold and wage rates. Failure to comply can lead to labour disputes, CCMA referrals, or penalties.

Effective 1 March 2025, the national minimum wage (as per the National Minimum Wage Act, 2018) is as follows:

Updated Minimum Wage Rates (per hour):

  • General Employees: R27.58

  • Farm Workers: R27.58

  • Domestic Workers: R23.20

  • Expanded Public Works Programme (EPWP) Workers: R15.16

Need Help Complying with Labour Laws?

For more information about the new wage rate increase or any other labour law advice or services. Please feel free to contact us at Cape Labour Consultants, and we will gladly assist you. Cape Labour & Industrial Consultants is a Cape Town-based company providing Labour Law (Industrial Relations) and advice to employers and employees across all market segments and industries since 1987.

For more information, contact Cape Labour. You can find all of our relevant details here.
W.Tel no: 021-423-3959
Cell: 082-433-8714
Fax: 021-4232105
E-mail: bernard@capelabour.co.za