Earnings Threshold

Earnings Threshold

Payroll / eTorQue

At present, the earnings threshold in the Basic Conditions of Employment Act is R 149 736.

It has been announced that, with effect from 1 July 2011, this will change to R 172 000 per annum.

This will have an effect on what and who you should be paying for overtime and work on Sundays. Earnings are your employee’s regular annual remuneration before deductions. This does not include any contributions you make for your employee. Subsistence and travel allowances, achievement awards and overtime pay must not be considered as remuneration.