What is included and excluded from the amount?
- The amount is before any deductions such as income tax, UIF, medical aid or pension / provident fund contributions
- Subsistence allowances and travel allowances are NOT included in the amount
- Achievement awards or once off performance payments and bonuses are NOT included.
- Payment for overtime is NOT included.
[…] The earnings threshold from 01 March 2022 is R224 080.48 per annum. To determine what is included and what is excluded: How to calculate the earnings threshold? […]
Thank you so much for this breakdown. I would like to know whether this covers me. My basic is R 15k, then as stated in my contract verbatim, R500 phone allowance, R1850 fuel allowance, R2500 overtime allowance (flat rate) and R3500 Transport allowance. When calculating this threshold, which allowances do I negate or add? Can fuel and transport allowance be construed as travel allowance or does it have to be stated that way in one’s contract?
Overtime allowance is explicitly excluded from the calculation. The legislation does not specifically refer to phone, fuel and transport allowances, but my assumption is that they will also be excluded since they are similar to contributions made on behalf of the employer and are often given as a reimbursement for expenses incurred by the employee. If a fuel and transport allowance are seen as similar to a travel allowance they are explicitly excluded from the calculation.
[…] To determine what is included and what is excluded: How to calculate the earnings threshold? […]
Does a 13th get included when calculating earnings threshhold?
13th cheques are considered bonuses and therefore are not included.
[…] to know what is included and what is excluded when calculating the earnings threshold? I wrote a blog piece about […]