The Minister of Employment and Labour has recently published the new earning threshold in terms of Section 6(3) of the Basic Conditions of Employment Act (BCEA), 75 of 1997. This new threshold, which will be effective from 1 April 2025, is set at R261,784.45 (Two hundred and sixty-one thousand, seven hundred and eighty-four rand, forty-five cents).
Employees covered by the Main Agreement
Employees whose terms and conditions of employment (scheduled employees) are contained the Main Agreement, are exempt from the application of the BCEA earnings threshold. The Agreement’s scope of application is confined to all workshop, production, construction and site-based employees at the level of general labourers up to and including qualified artisans.
Implications of the new earning threshold
The BCEA earning threshold has implications for office-based, administrative, managerial, or professional roles (white-collar employees) in the metal and engineering industries. Employees earning above this threshold are excluded from certain statutory rights, including:
- Ordinary hours of work
- Overtime pay
- Compressed working week provisions
- Ministerial determination of hours worked
- Meal intervals
- Daily and weekly rest periods
- Pay for work on Sundays
- Pay for public holidays
Employers in the metal and engineering sectors should take note of these changes, as they will directly impact the employment conditions and protections available to white-collar employees.
For more information, please click here to view the gazette.
Vuyiswa Miya-Mokwana
Industrial Relations Executive
