Members are advised that the Department of Employment and Labour has increased the earnings threshold to R 241 110.59 per annum (R 20 092.54 per month) with effect from 1 March as per the attached Government Gazette.
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 (hereinafter referred as the BCEA). The earnings threshold excludes certain terms and conditions of employment of employees earning in excess thereof. The Gazette defines earnings as the regular annual remuneration an employee earns before deductions, excluding 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 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 in the Main Agreement apply to employees earning in excess of the threshold of R 241 110.59 per annum (R 20 092.54 per month) :
MIBCO MAIN AGREEMENT
Clause 2 – Definitions
Clause 3.8 – Payment of Earnings
Clause 3.9 – Deductions from Earnings
Clause 3.11 – Piece Work
Clause 3.12 – Commission Work
Clause 3.14 – Travelling Allowances
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, ect. do not apply to employees earning in excerss of the threshold.
Please note that the collective agreements have not yet been gazetted and are therefore not enforceable. This will be communicated to members once published.
Be advised that the application of the wage threshold will be discussed during the IR seminar to be presented on 2 March 2023 which will be held online and will be free of charge to RMI members.
If you have any queries in this regard, please contact your local IR Specialist: