The Minister of Employment and Labour has recently published the new earning threshold in terms of Section 6(3) of the Basic Conditions of Employment Act (BCEA), 75 of 1997. This new threshold, which will be effective from 1 May 2026, is set at R269,600.90 (Two hundred and sixty-nine thousand, six hundred rand and ninety cents).
Employees covered by the Main Agreement
The BCEA earnings threshold does not apply to employees who fall under the Main Agreement. The scope of the Main Agreement is confined to workshop, production, construction, and site-based employees, ranging from general labourers up to and including qualified artisans.
Implications of the new earning threshold
The BCEA earning threshold applies to office-based, administrative, managerial, or professional roles (non-scheduled employees) in the metal and engineering industries. Employees earning above this threshold are excluded from certain statutory rights, including:
- Ordinary hours of work
- Overtime pay
- Compressed working week provisions
- Ministerial determination of hours worked
- Meal intervals
- Daily and weekly rest periods
- Pay for work on Sundays
- Pay for public holidays
Employers in the metal and engineering sectors should take note of these changes, as they will directly impact the employment conditions and protections available to white-collar employees.