BCEA Annual Earnings Threshold Increased to R269,900.90

Posted 29 April 2026 Written by Acts Online
Category Justice

Brought to you by SA Accounting Academy: The Department of Employment and Labour has adjusted the annual earnings threshold upwards, expanding the pool of employees entitled to statutory protections regarding working hours and overtime.

In terms of the Basic Conditions of Employment Act, No. 75 of 1997 (BCEA), the Minister of Employment and Labour has increased the annual earnings threshold to R269,900.90, effective from 1 May 2026. This represents an increase from the previous threshold of R261,748.45. The new annual figure equates to approximately R22,466.74 per month.

For the purposes of this determination, “earnings” is defined as an employee’s regular annual remuneration before deductions such as income tax, pension, and medical aid. However, this definition specifically excludes:

  • Contributions made by the employer in respect of the employee;
  • Subsistence and transport allowances;
  • Achievement awards; and
  • Payments for overtime worked.

Employees earning below the R269,900.90 threshold are entitled to specific protections under the BCEA and certain provisions of the Labour Relations Act, No. 66 of 1995. These protections include:

  • Payment for overtime worked in excess of 45 hours per week;
  • Compulsory meal intervals and daily/weekly rest periods;
  • Night work allowances; and
  • Regulated pay for work on Sundays and public holidays.

Employees earning above this threshold are generally excluded from the sections of the BCEA that regulate these specific working hour conditions, though they remain covered by other statutory provisions.

What this means for you, your business, or your clients

  • For yourself: Ensure your advisory services correctly distinguish between employees above and below the new R22,466.74 monthly limit when auditing payroll compliance or drafting employment contracts.
  • For your business: Update payroll systems and HR policies before 1 May 2026 to identify employees who will fall below the new threshold and thus become eligible for mandatory overtime pay and regulated rest periods.
  • For your clients: Advise clients to review their labor cost projections, as employees earning between R261,748.45 and R269,900.90 will transition into the protected category, potentially increasing operational costs related to overtime and shift allowances.

Originally published at https://accountingacademy.co.za/news/read/doel-increase-in-bcea-annual-earnings-threshold

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