South African employees earning above approximately R22 400.00 per month are set to be affected by a significant regulatory change following an adjustment to the national earnings threshold under labour legislation.
The Department of Employment and Labour has increased the earnings threshold that determines the scope of protections afforded under the Basic Conditions of Employment Act (BCEA), as well as certain provisions of the Labour Relations Act (LRA) and Employment Equity Act (EEA).
From 1 May 2026, the updated annual earnings threshold will rise to approximately R269 601.00, which translates to about R22 467.00 per month. Employees earning above this level will no longer automatically qualify for certain statutory protections relating to working hours, overtime and public holiday pay.
The earnings threshold is an important legal benchmark in South African labour law, as it effectively distinguishes between employees who are deemed to require greater statutory protection and those whose employment conditions are more heavily governed by individual contract terms.
Workers earning below the threshold remain fully protected under key provisions of the BCEA, including regulations on ordinary working hours, overtime, rest periods and compensation for work performed on Sundays and public holidays. However, employees above the threshold typically negotiate these conditions directly with their employers.
The adjustment is part of the government’s annual review of the threshold, which is intended to keep pace with wage inflation and broader economic conditions. The increase reflects a moderate year-on-year adjustment in line with prevailing economic trends.
Legal experts note that the change may have practical implications for both employers and employees, particularly in relation to employment contracts, payroll structuring and compliance obligations.
Employers are advised to review employment contracts and internal policies to ensure continued compliance with labour legislation following the threshold adjustment.
