2 minute read
National Minimum Wage and Earning threshold increased
On 7 and 8 February 2022, two significant developments took place in the employment law arena. These were.
Advertisement
New Earnings Threshold
On 8 February 2022, the Minister of Employment and Labour announced that the “earning threshold” had been increased.
R 17 633.00 Per Month
R
R 18 673.37 Per Month
Previously, the earnings threshold was R 211 596.30 per year (approximately R 17 633.00 per month).appr As from 1 March 2022, the new earnings threshold will be R 224 080.48 per year (approximately R 18 673.37 per month).
“Earnings” includes the employee’s regular annual remuneration before deductions, but excludes benefits such as subsistence and transport allowances, achievement awards and payments for overtime worked. Employees who earn more than the earnings threshold per annum are excluded from the protection of sections 9, 10, 11, 12, 14, 15, 16, 17(2) and 18(3) of the Basic Conditions of Employment Act, 1997.
The increase in the threshold will mean that from 1 March 2022, some employees who earn more than R 211 596.30 but less than R 224 080.48 per year may be entitled to additional protections, such as overtime payment when working more than 45 hours per week, compulsory breaks and rest periods, night work allowances and the like.
Increases in the National Minimum Wage
The Minister of Employment and Labour also published increases in the national minimum wage and various sectoral determinations. These increases are also effective from 1 March 2022.
The national minimum wage will change from R 21.69 for each ordinary hour that an employee works to R 23.19 for each ordinary hour that an employee works. This is an increase of R 1.50 per hour. It is important to note that farm workers and domestic workers will also be entitled to the same national minimum wage. However, workers employed on an expanded public workers programme are entitled to R 12.75 per hour. Sectoral determinations have also been made for the contract cleaning sector and the wholesale and retail sector. Employers in these sectors will be required to increase their minimum wages, too.
In addition, workers who have concluded learnership agreements are entitled to certain allowances as outlined in a Schedule in the Government Gazette.
Lauren Salt Employment | Executive l salt@ENSafrica.com
Jessie Gertzen Employment | Candidate Legal Practitioner jgertzen@ENSafrica.com
National minimum wage will change
From R21.69 for
each ordinary hour that an employee works to R23.19 for each ordinary hour that an employee works
