BCEA Earnings Threshold Increase

BCEA Earnings Threshold Increase: What Businesses Need to Do Before 1 May 2026

South African businesses have an important compliance update to act on.

The Minister of Employment and Labour, Nomakhosazana Meth, has announced a new earnings threshold under the Basic Conditions of Employment Act (BCEA), effective 1 May 2026.

🔢 What’s Changed?

The earnings threshold has increased to:

R269,600.90 per annum
(Approximately R22,466 per month)

This is a modest increase aligned with inflation, but its impact on compliance is significant.

⚠️ Why This Matters

The BCEA earnings threshold determines which employees are entitled to certain protections related to working hours and pay.

Employees earning below the threshold:

✔ Qualify for:

Overtime pay
Sunday pay
Public holiday pay
Night work allowances

Employees earning above the threshold:

❌ Are excluded from provisions regulating:

Ordinary working hours
Overtime
Compressed and averaged working hours
Meal intervals and rest periods
Sunday and public holiday pay
Certain aspects of night work

🚨 What This Means for Your Business

Even though the increase is relatively small, it can shift employees into different compliance categories.

If your business doesn’t adjust accordingly, you may face:

Underpayment risks
Employee disputes
Labour inspections and penalties

✅ Key Actions You Should Take Now

To stay compliant, businesses should act immediately:

Review Employee Earnings
Identify which employees now fall below the new threshold.
Audit Payroll Systems
Ensure overtime, Sunday pay, and public holiday pay are correctly calculated.
Update Employment Contracts
Align terms and conditions with the correct BCEA provisions.
Check Policies & Procedures
Make sure internal HR policies reflect the updated threshold.
Align HR and Payroll Teams
Avoid gaps between what is promised, processed, and paid.

📊 A Small Change with Big Impact

While this adjustment reflects inflation, it directly affects how employees must be managed, paid, and protected.

This is not just a payroll update — it’s a compliance responsibility.

🤝 Need Help?

At HR Consult, we help businesses stay compliant without the stress.

From payroll audits to contract updates and labour law support, we make sure your HR processes are aligned, practical, and legally sound.

Don’t stress — we’ve got your HR covered.

Office: 012 997 0037

E-mail: info@hrconsultsa.co.za

*This article is for informational purposes only and does not constitute legal advice.

Adapted by HR Consult, specialists in South African labour and employment law compliance.

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