CAREER’S CORNER - NEW EARNINGS THRESHOLD IMPACTS YOUR RIGHTS AS AN EMPLOYEE
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GUEST - Sashin Naidoo - Associate at Cliffe Dekker Hofmeyr
From 1 March, the new earnings threshold was adjusted to R241 110.59 a year (about R20 093 a month), in
terms of a notice published in the Government Gazette on 20 February. The previous threshold was R224 080.48 a year (about R18 673 a month). In other words, the threshold has been increased by R17 030.11, or 7.59%. Employees who earn between R224 080.48 and
R241 110.59 a year will join the ranks of those who benefit from certain statutory provisions. “Earnings” are defined as regular annual remuneration before deductions (for income tax, a retirement fund, a medical scheme, and “similar payments”) but exclude
contributions made by an employer on behalf of an employee. Remuneration also excludes subsistence and transport allowances, achievement awards and payment for overtime worked.
From 1 March, the new earnings threshold was adjusted to R241 110.59 a year (about R20 093 a month), in
terms of a notice published in the Government Gazette on 20 February. The previous threshold was R224 080.48 a year (about R18 673 a month). In other words, the threshold has been increased by R17 030.11, or 7.59%. Employees who earn between R224 080.48 and
R241 110.59 a year will join the ranks of those who benefit from certain statutory provisions. “Earnings” are defined as regular annual remuneration before deductions (for income tax, a retirement fund, a medical scheme, and “similar payments”) but exclude
contributions made by an employer on behalf of an employee. Remuneration also excludes subsistence and transport allowances, achievement awards and payment for overtime worked.
