Employment law update
Here are two important recent developments in the South African employment law landscape effective from 1 March 2021 that you should know about.
Increases in minimum wages:
| Minimum wage for each ordinary hour worked | 2020 | 2021 with effect from 1 March 2021 |
|---|---|---|
| National minimum wage | R20.76 | R21.69 |
| Farm workers | R18.68 | R21.69 |
| Domestic workers | R15.57 | R19.09 |
| Workers employed on expanded public works programme | R11.42 | R11.93 |
Increases have been made to the National Minimum Wage and sectoral determinations have been published as follows:
Minimum wage for each ordinary hour worked 20202021 with effect from 1 March 2021
Workers who have concluded learnership agreements contemplated in section 17 of the Skills Development Act, 1998 (Act No. 97 of 1988), are entitled to the allowances contained in Schedule 2 in Government Gazette No. 44136 of 8 February 2021.
Various other minimum wages have been set for certain sectors.
Increase in the “earnings threshold”:
The earnings threshold in South Africa is the cut-off point at which a number of basic protections entrenched in the labour legislation including the Basic Conditions of Employment Act 1997 no longer apply to an employee.
“Earnings” means an employee’s regular annual remuneration before the deduction of income tax, pension fund contributions, medical aid contributions and similar contributions.
The new earnings threshold will be R211 596.30 per year (approximately R17 633.00 per month), effective from 1 March 2021, having been increased for the first time since 2014 (then R205 433.30 per year)
Employees who earn more than the earnings threshold per annum are excluded from the protection of sections 9, 10, 11, 12 , 14, 15, 16, 17(2) and 18(3) of the Basic Conditions of Employment Act, 1997. This includes payment for overtime, compulsory breaks and rest periods, and a night work allowance.
This article is provided for informational purposes only and should not be substituted for legal advice on any specific matter. Any opinions expressed herein are subject to the law as at the time of writing and will change in accordance with any change in the law. We recommend that you contact HJW Attorneys at info@hjw.co.za directly for advice applicable to your specific matter.