New Earnings Threshold

Some provisions of the Basic Conditions of Employment Act, the Labour Relations Act and the Employment Equity Act are only applicable to employees who earn below the earnings threshold as set by the Minister of Labour from time to time.

The previous earnings threshold was R205 433.30 per year.

The new earnings threshold as of March 2021 is R211 596.30 per year (see calculation below).


What is included and excluded from the amount?

  1. The amount is before any deductions such as income tax, UIF, medical aid or pension / provident fund contributions
  2. Subsistence allowances and travel allowances are NOT included in the amount
  3. Achievement awards or once off performance payments and bonuses are NOT included.
  4. Payment for overtime is NOT included.

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