I, Thembelani Waltermade Nxesi, Minister of Employment and Labour, hereby 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 R211 596.30 (Two Hundred and Eleven Thousand, Five Hundred and Ninety Six Rand and Thirty Cents) per annum be excluded from section 9, 10, 11, 12, 14, 15, 16, 17(2) and 18(3) of this Act with the effect from 1 March 2021. Alternatively, it is R17 633.03 (Seventeen Thousand Six Hundred and Thirty Three Rand and Three Cents) per month.
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.
Employees who earn in excess of the threshold are excluded from certain provisions of the BCEA such as those relating to ordinary hours of work (section 9), overtime (10), compressed working weeks (11), averaging hours of work (12), meal intervals (14), daily and weekly rest periods (15), pay for work on Sundays (16), pay for night work (17 (2)) and pay for public holidays where the employee works on a day he/she would not ordinarily work (18(3)).
On Monday Nxesi also published a Government Gazette providing for the amendment of the national minimum wage, as set out in Schedule 1 and Schedule 2 of the National Minimum Wage Act 9, 2018, They become effective on March 1. Subject to the below, the national minimum wage shall be:
- R21,69 per ordinary hour worked.
- R21,69 per ordinary hour for farmworkers.
- R19,09 per ordinary hour for domestic workers
R11,93 per ordinary hour for workers employed on an expanded public works programme.
Specific minimum wage rates are set for:
- Learnership allowances.
- Workers in the contract cleaning sector (ie Sectoral Determination 1).
- Workers in wholesale and retail.
CONTACT CAPE LABOUR.
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 providing Labour Law (Industrial Relations) and advice to employers and employees across all market segments and industries since 1987.
For more information or to Contact Cape Labour. You can find all of our relevant details here.
W.Tel no.: 021-423-3959