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On 1 May 2026, the Basic Conditions of Employment Act (the BCEA) earnings threshold increases to R269,600.90 per year or R22,466.74 per month.
This matters to employers because employees earning below that threshold automatically receive certain key protections under the BCEA.
For employers, this is not just a payroll figure. It is a labour law compliance trigger that directly affects employees’ conditions of employment.
What counts as “earnings”
For this threshold, “earnings” means an employee’s regular annual remuneration before deductions, including income tax, pension and medical aid contributions, but excluding similar contributions made by the employer. It also excludes subsistence allowances, transport allowances, achievement awards and overtime payments.
This is an important compliance point. Employers should not assume that gross monthly salary alone answers the threshold question without checking what must be included and excluded.
Which BCEA protections are affected?
The sections of the BCEA impacted by the threshold include:
- ordinary working hours
- overtime
- compressed working weeks
- averaging of hours of work
- meal intervals
- daily and weekly rest periods
- pay for work on Sundays
- night work
- pay for public holidays
- fixed-term and part-time employment
Employees earning above the threshold are excluded from these provisions unless otherwise agreed in their contracts of employment or collective agreements.
Opportunity for employers
This change could lead to increased labour costs for many employers because of additional statutory entitlements.
Employers should consider re-evaluating and potentially modifying their pay structures and employment conditions for both current and future employees whose earnings are close to this new threshold.
What counts as “earnings” for threshold purposes?
For this notice, “earnings” means an employee’s regular annual remuneration before deductions, including deductions such as income tax, pension and medical aid, but excluding similar contributions made by the employer. It also excludes subsistence allowances, transport allowances, achievement awards and overtime payments when calculating whether the threshold is exceeded.
This is an important compliance point. Employers should not assume that gross monthly salary alone answers the threshold question without checking what must be included and excluded for the purpose of the notice.
Common mistakes to avoid
Employees now earning at or above the threshold do not lose all their labour law protections; the protections listed do not automatically apply to them.
Employers must also be aware that the threshold change does not entitle them to make unilateral changes to existing contractual benefits without following due process. Where employers wish to amend existing employment contracts that provide for overtime pay or any of the other conditions listed above, they may do so only through consultation and agreement with the affected employee.
What employers should do now
To ensure they remain compliant, employers should:
- Identify employees who have moved either above or below the new threshold
- Review their employment contracts
- Reassess remuneration structures and working arrangements.
How SEESA can help
SEESA assists employers with employment contract reviews, policy realignments, payroll-related labour risk and labour law compliance.
Conclusion
The BCEA earnings threshold 2026 increases to R269,600.90 per year from 1 May 2026, and employers should not wait until after the effective date to respond. The threshold affects more than overtime. It influences payroll compliance, hours of work, premium pay, dispute routes and threshold-based labour protections. A proactive review now can help employers avoid unnecessary disputes and compliance exposure.
If your business needs help reviewing threshold-related risk, contracts or working-time compliance, contact SEESA for employer-focused labour law guidance.
Read the BCEA Earnings Threshold 2026 here.
Frequently Asked Questions
From 1 May 2026, the BCEA earnings threshold is R269,600.90 per year, or about R22,466.74 per month.
No. It means certain BCEA working-time and premium-pay sections do not apply automatically. Other contract terms, workplace rules and labour laws still apply.
The main exclusions relate to ordinary hours of work, overtime, compressed working weeks, averaging of hours, meal intervals, daily and weekly rest periods, Sunday pay, certain night work protections and certain public holiday pay provisions.
Regular annual remuneration before deductions counts, but subsistence allowances, transport allowances, achievement awards and overtime payments are excluded for threshold purposes.
In unfair discrimination matters other than sexual harassment, employees above the threshold generally go to the Labour Court unless the parties agree in writing to CCMA arbitration. Sexual harassment disputes may be arbitrated by the CCMA regardless of earnings.
Employers should review payroll classifications, overtime practices, attendance rules, contracts, Sunday and public holiday pay practices, and any threshold-based Employment Equity or LRA implications.
Prepare your business. Request a labour law risk assessment today. SEESA’s labour law consultants are ready to assist.