Payment for Overtime – Senior Managers & Employees over the Threshold

Payment for Overtime – Senior Managers & Employees over the Threshold

Payroll / eTorQue

There is much confusion regarding the payment of overtime, Sunday time and Public Holiday Pay for Senior Managers and those employees earning in excess of R183 006 per annum.

Employees earning in excess of R183 006 per annum are excluded from being paid for any time worked as overtime or Sunday time. They are, however, entitled to be paid or given time off for time work on a Public Holiday at double time. However, once an employee becomes a ‘senior managerial employee’, regardless of their earnings, he/she is no longer entitled to be paid or given time off for any overtime including Sundays and Public Holidays.

It is important to note that a senior managerial employee is clearly defined by the Basic Conditions of Employment as “an employee who has the authority to hire, discipline and dismiss employees and to represent the employer internally and externally”.