{"id":6660,"date":"2023-02-24T10:55:22","date_gmt":"2023-02-24T08:55:22","guid":{"rendered":"https:\/\/dotnewsconnect.co.za\/law\/?p=6660"},"modified":"2023-02-24T11:12:03","modified_gmt":"2023-02-24T09:12:03","slug":"effective-1-march-2023-new-earnings-threshold-and-national-minimum-wage","status":"publish","type":"post","link":"https:\/\/dotnewsconnect.co.za\/law\/2023\/effective-1-march-2023-new-earnings-threshold-and-national-minimum-wage\/","title":{"rendered":"Effective 1 March 2023: New Earnings Threshold and National Minimum Wage"},"content":{"rendered":"

Employers and employees need to keep an eye on the annual increases in both the National Minimum Wage and the Earnings Threshold, summarised below for your convenience. Both are effective from 1 March 2023.<\/p>\n

The National Minimum Wage increase<\/h6>\n

The National Minimum Wage (NMW) for each \u201cordinary hour worked\u201d has been increased by 9.6% from R23-19 to R25-42. Workers who have concluded learnership agreements in terms of the Skills Development Act are entitled to a sliding scale of allowances.<\/p>\n

Domestic workers<\/h6>\n

Domestic workers were brought into line with the NMW in 2022, and assuming a work month of 21 days x 8 hours per day, R25-42 per hour equates to R4,270-56 per month. The\u00a0Living Wage<\/strong><\/a>\u00a0calculator will help you check whether or not you are actually paying your domestic worker enough to cover a household\u2019s \u201cminimal need\u201d (adjust the \u201cAssumptions\u201d in the calculator to ensure that the figures used are up to date).<\/p>\n

The Earnings Threshold Increase<\/h6>\n

The annual earnings threshold above which employees lose some of the protections of the\u00a0Basic Conditions of Employment Act<\/strong>\u00a0has been increased by 7.6% from R224,080-48 p.a. (R18,673-87 p.m.) to R241,110-59 p.a. (R20,092-55 p.m.).<\/p>\n

“Earnings” (for this purpose only) means \u201cthe regular annual remuneration before deductions, i.e. income tax, pension, medical and similar payments but excluding similar payments (contributions) made by the employer in respect of the employee: Provided that subsistence and transport allowances received, achievement awards and payments for overtime worked shall not be regarded as remuneration\u201d.<\/p>\n

Some employees enjoy only limited BCEA protection even if they earn below the threshold – notably any \u201csenior managerial employee” (\u201can employee who has the authority to hire, discipline and dismiss employees and to represent the employer internally and externally\u201d), any \u201csales staff who travel to the premises of customers and who regulate their own hours of work\u201d and any \u201cemployees who work less than 24 hours a month for an employer\u201d. Take specific advice for details.<\/p>\n

The threshold also impacts on some of the protections provided in the\u00a0Labour Relations Act<\/strong>\u00a0\u2013<\/p>\n

    \n
  • Employees earning less than the threshold, if contracted to a client for more than three months through a temporary employment service (\u201clabour broker\u201d) are deemed to be employed by the client unless they are actually performing a temporary service.<\/li>\n
  • Fixed-term employees earning below the threshold are deemed to be employed indefinitely after three months unless the employer has a justifiable reason for fixing the term of the contract.<\/li>\n<\/ul>\n

    Turning to the\u00a0Employment Equity Act<\/strong>, employees earning over the threshold can only refer unfair discrimination disputes (other than disputes based on sexual harassment) to the Commission for Conciliation, Mediation and Arbitration (CCMA) with the consent of all parties. Otherwise, they must go to the Labour Court for arbitration.<\/p>\n

    Disclaimer:<\/strong>\u00a0The information provided herein should not be used or relied on as professional advice. No liability can be accepted for any errors or omissions nor for any loss or damage arising from reliance upon any information herein. Always contact your professional adviser for specific and detailed advice.<\/p>\n

    \u00a9 LawDotNews<\/p>\n","protected":false},"excerpt":{"rendered":"

    Employers and employees need to keep an eye on the annual increases in both the National Minimum Wage and the Earnings Threshold, summarised below for your convenience. Both are effective from 1 March 2023. The National Minimum Wage increase The National Minimum Wage (NMW) for each \u201cordinary hour worked\u201d has been increased by 9.6% from […]<\/p>\n","protected":false},"author":101014,"featured_media":6661,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","footnotes":""},"categories":[10],"tags":[],"class_list":["post-6660","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-employment-and-labour-law"],"yoast_head":"\nEffective 1 March 2023: New Earnings Threshold and National Minimum Wage • LawDotNews<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/dotnewsconnect.co.za\/law\/2023\/effective-1-march-2023-new-earnings-threshold-and-national-minimum-wage\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Effective 1 March 2023: New Earnings Threshold and National Minimum Wage • LawDotNews\" \/>\n<meta property=\"og:description\" content=\"Employers and employees need to keep an eye on the annual increases in both the National Minimum Wage and the Earnings Threshold, summarised below for your convenience. 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