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Basic Conditions of Employment Act

The basic conditions of employment act for employment in South Africa are governed by the BCEA. The Minister of Labour announces various amendments from time to time. The BCEA is a basic requirement of all payroll services.

Basic Conditions of Employment Act 

Annual Threshold Earnings  – 1 July 2013

South Africa Labour Law is governed by the Basic Conditions of Employment (BCEA).  This controls working hours and minimum wages. It also regulates leave,  employment contracts, deductions, pay slips, and termination. This applies to all employers payroll services companies.

The Minister from the Department of Labour announced the following. Effective from 1 July 2013, the earnings threshold in the Basic Conditions of Employment Act (BCEA), will be increased from R183,008 per annum to R193,805 per annum.

  • Monthly equivalent of the new threshold is R16,150.42
  • Weekly equivalent is R3,727.02

Please note that this change is applicable to the BCEA earnings threshold and it does not affect or change the UIF limit. The UIF limit is still R149,736 per annum.

Annual threshold from 1 July 2012 was R183,008.00 (R15,250.67 p/m)

What does this mean for your payroll?

Employees who earn in excess of the threshold are excluded from the following sections of the BCEA.

  • Section 9 – Ordinary hours of work
  • Section 10 – Overtime
  • Section 11 – Compressed working week
  • Section 12 – Averaging of hours of work
  • Section 15 – Daily & weekly rest period
  • Section 17(2) – Night work
  • Section 18 (3) – Public Holidays

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Pay Solutions Payroll Services

Pay Solutions will ensure that your payroll complies with the basic conditions of employment act.

  • Detailed payslips reflecting all earnings and deductions
  • Paying accurately and on time
  • Payment of third party payments
  • Management of garnishes and loans and the payment thereof
  • Management of all leave types

N.B. Remember mismanagement of  leave costs you money