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New 2026 BCEA Earnings Threshold: What You Need to Know

On 17 April 2026, the Department of Employment and Labour announced an updated earnings threshold under the Basic Conditions of Employment Act (BCEA) (Government Notice 7384, Govt Gazette 54544). This figure determines which employees qualify for certain working-time protections.

What Is the Earnings Threshold?

The earnings threshold is a legal cutoff that affects how some BCEA provisions apply. From 1 May 2026, workers earning more than R269,600.90 per year (about R22,466.74 per month) will be considered “over the threshold.”

“Earnings” means an employee’s basic annual salary before deductions (like tax or pension). It does not include overtime, travel or subsistence allowances, bonuses, or employer contributions.

Why It Matters

Employees earning below the threshold automatically receive key BCEA protections, such as limits on working hours, required breaks, and rules for overtime and premium pay. Those earning above it may be excluded from these specific protections — but their contracts can still provide these benefits.

Which Protections Don’t Automatically Apply Over the Threshold?

Workers earning above R269,600.90 may be excluded from parts of the BCEA that cover:

  • Ordinary working hours and overtime
  • Compressed workweeks and hour averaging
  • Meal breaks and daily/weekly rest
  • Premium pay for Sundays and some public holidays
  • Certain night work provisions

 

This doesn’t remove all rights — it means the statutory minimums no longer automatically apply, and employers and employees can agree on terms by contract.

What Changed in 2026?

The threshold increased from R261,748.45 (effective 1 April 2025) to R269,600.90 — about a 3% rise. Some workers may now fall below the threshold if their pay stayed the same, while others may cross above it due to raises or allowances.

What Employers and Workers Should Do

  • Employers: Update payroll and HR systems to correctly classify who is below/above the new threshold.
  • Employees: Understand whether standard BCEA time and pay protections apply to you — or if your employment contract governs these terms.

For the full legal wording, refer to the official BCEA 2026 earnings threshold notice.


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