NEW BCEA EARNINGS THRESHOLD RISES TO R269 600.90 (Two hundred and sixty nine thousand six hundred. Ninety) FROM 1 MAY 2026
19 April 2026 — Employers across South Africa are urged to urgently review and adjust their remuneration and payment frameworks following the announcement of a new earnings threshold under the Basic Conditions of Employment Act (BCEA), No. 75 of 1997.
The Minister of Employment and Labour, Nomakhosazana Meth, has formally published Government Notice No. 7384 on 17 April 2026, confirming that the BCEA earnings threshold will increase to R269 600.90 (Two hundred and sixty nine thousand six hundred. Ninety) per annum with effect from 1 May 2026. This represents a 3 (Three) % increase from the previous threshold of R261 748.45 (Two hundred and sixty one thousand seven hundred and forty eight. Forty five), aligning directly with CPI inflation as reported in March 2026.
The earnings threshold plays a critical role in determining the applicability of key protections under the BCEA. Employees earning above this threshold are excluded from several provisions regulating working time and premium payments.
1. Key Implications for Employers:
The increase has significant compliance implications. Employers must take proactive steps to ensure that employees earning below the new threshold are correctly remunerated in accordance with statutory entitlements.
Failure to adjust remuneration structures may result in non-compliance with the BCEA, particularly in relation to:
- Overtime pay.
- Sunday work remuneration.
- Public holiday pay.
- Night work allowances and related premiums.
Employers are specifically cautioned to audit their payroll systems, employment contracts, and time-management practices to ensure that all qualifying employees receive the required premium payments.
2. Scope of Exclusion Above the Threshold:
Employees earning above R269 600.90 (Two hundred and sixty nine thousand six hundred. Ninety) per annum will be excluded from the following BCEA provisions:
- Section 9: Ordinary hours of work.
- Section 10: Overtime.
- Section 11: Compressed working weeks.
- Section 12: Averaging of hours.
- Section 14: Meal intervals.
- Section 15: Daily and weekly rest periods.
- Section 16: Pay for work on Sundays, public holidays, and night work.
- Section 17(2): Payment for overtime work.
- Section 18(3): Certain provisions relating to (TES) Temporary Employment Services.
3. Targeted Inflationary (CPI) Adjustment:
This increase reflects a measured, CPI inflation-linked adjustment designed to maintain the real value of the threshold in line with prevailing economic conditions. While modest, the change has practical implications for workforce segmentation and compliance obligations.
4. Call to Action:
Employers are encouraged to act immediately to:
- Reassess which employees fall below the new threshold.
- Adjust payroll calculations for premium payments.
- Update contracts and policies where necessary.
- Ensure alignment between HR, payroll, and legal compliance functions.
Failure to implement these changes could expose organisations to disputes, enforcement action, and financial penalties.
Please refer to the following for your perusal, in reference to the above: https://businesstech.co.za/news/business/857617/big-change-for-employees-now-earning-over-r22400-a-month-in-south-africa/
