Employment Relations

New Earnings Threshold – 2021

Some provisions of the Basic Conditions of Employment Act, the Labour Relations Act and the Employment Equity Act are only applicable to employees who earn below the earnings threshold as set by the Minister of Labour from time to time.

The previous earnings threshold was R205 433.30 per year.

The new earnings threshold as of March 2021 is R211 596.30 per year (see calculation below).

What is included and excluded from the amount?

  1. The amount is before any deductions such as income tax, UIF, medical aid or pension / provident fund contributions
  2. Subsistence allowances and travel allowances are NOT included in the amount
  3. Achievement awards or once off performance payments and bonuses are NOT included.
  4. Payment for overtime is NOT included.

3 responses to “New Earnings Threshold – 2021”

  1. Sharon Viljoen Avatar
    Sharon Viljoen

    Good Day, are you based in South Africa? I notice that your templates to purchase are in dollars?

    1. carmenfourie Avatar

      Yes, I am based in South Africa. The templates are in dollars because the plugin I use to make them available immediately after purchase didn’t have Rands. The payment portal does allow payment with South African accounts.

  2. jedwardnormgmailcom Avatar
    jedwardnormgmailcom

    You are as helpful as you are beautiful as you are intelligent! I have subscribed to your youtube channel and just wanted to say thank you. Its not often ones query is answered in one sitting, on one page and in such an intelligible manner. Yowser boet. Bless you and your every step Carmen.

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