National Minimum Wage: the 2022 update to the earnings threshold.

National Minimum Wage: the 2022 update to the earnings threshold.

The earnings threshold is the point at which the Labour Relations Act (LRA), the Basic Conditions of Employment Act (BCEA), and the Employment Equity Act (EEA) all come into play.

The new earnings level will be established at R224,080.48 per year (R18,673.37 per month) as of 1 March 2022, according to the minister on 8 February 2022. This sum is before taxes, pensions, medical expenses, and other deductions, and it does not include employer payments like as transportation allowances, accomplishments, or overtime.

The previous wages limit of R211,596.30 per year was established in 2021. (R17,633.25 per month).

The threshold is used to decide whether criteria related to the LRA and other fundamental employment requirements would apply, and it is considered as a way to safeguard vulnerable workers.

Employees earning less than the minimum wage are fully protected by the BCEA, which includes measures such as 1.5-time overtime compensation, night shift allowances, and transportation for work completed after 18:00.

Employees earning more than the minimum wage, on the other hand, are exempt from these rules, which means they are not automatically entitled to overtime and are not protected by sections 9, 10, 11, 12, 14, 15, 16, 17(2), and 18(3) of the Basic Conditions of Employment Act, 1997 (the “BCEA”).

Nothing under the BCEA, however, prevents the employer and employee from contractually dealing with these requirements. If an employee is exempt from the restrictions of the “BCEA,” for example, parties may agree in writing on any pay for hours worked over the standard 45-hour work week.

Increases in the National Minimum Wage Act, or “NMWA,” were also announced by the Minister of Employment and Labor. These adjustments will take effect on March 1, 2022.

For every regular hour an employee works, the national minimum wage will increase from ZAR21.69 to ZAR23.19.

Domestic employees will now be entitled to the same national minimum wage of ZAR23.19 as agriculture and other workers in the Republic. Employees on the enlarged public workers program, on the other hand, get paid ZAR12.75 per hour.

The NMWA has also established new minimum wage rates for the Contract Cleaning, Wholesale, and Retail Areas, so people working in these sectors will be paid the published minimum wage. Employers should not change working hours or other job circumstances in order to evade paying the national minimum wage, according to the agency. Attempting to get around the NMWA in this manner is considered criminal. An application to be excused from these rules may be made if an employer cannot pay the required minimums.