New earnings threshold as from  1 April 2024

Members are advised that the Department of Employment and Labour (DEL) has increased the earnings threshold to R254 371,67 per annum (R21 197,64 per month) or (R4 891.76 per week) with effect from 1 April 2024 as per Government Gazette 50252, Notice no. 4468 of 05 March 2024.
 
The earnings threshold is determined by the Minister of Employment and Labour from time to time in terms of the Basic Conditions of Employment Act of 1997(BCEA). The earnings threshold excludes certain terms and conditions of employment of employees earning in excess of the threshold. The Gazette defines earnings as the regular annual remuneration an employee earns before deductions, excluding those contributions made by the employer to the employee such as subsistence and transport allowances, achievement awards and payment for overtime worked.
 
The Motor Industry collective agreements similarly contain a wage threshold, which is aligned with the BCEA, and defines it as “weekly or monthly remuneration, excluding commission on sales”. This means that only the following clauses contained in the Main Agreement apply to employees earning in excess of the threshold of R254 371,67 per annum (R21 197,64 per month) or (R4 891.76 per week):
 
MIBCO MAIN AGREEMENT:
Clause 2- Definitions
Clause 3.8- Payments of Earnings
Clause 3.9- Deductions
Clause 3.11- Piece Work
Clause 3.12- Commission Work
Clause 3.14- Travelling Allowance
Clause 5.1- Leave
Clause 5.2- Sick Leave
Clause 5.3- Maternity Leave
Clause 5.4- Other Parental Leave
Clause 7.1- Termination of Service
Clause 7.3- Retrenchment Pay
Clause 7.4- Desertion
Clause 7.5- Certificate of Service
Clause 9.1- Outwork
Clause 9.3- Damage and/or loss of Property or Assets
Clause 9.6- Public Holidays
 
Aspects such as wage/ salary increases, overtime, payment of allowances etc do not apply to employees earning in excess of the threshold.

If you have any queries in this regard, please contact your local IR Specialist:  IR Contacts – Retail Motor Industry Organisation (rmi.org.za)

Regards,
Jeff Molefe
​Director: Labour