South African workers earning above R269,600.90 per annum have lost the automatic protection of several key labour laws from today, 1 May 2026, following the implementation of the updated Basic Conditions of Employment Act earnings threshold on Workers’ Day.
The earnings threshold is reviewed annually by the Minister of Employment and Labour and determines which workers are entitled to certain automatic protections under the BCEA, the Labour Relations Act and the Employment Equity Act.
The previous threshold of R261,748.45 had been in effect since 1 April 2025, according to law firm Werksmans Attorneys.
What the new threshold means in practice
The figure of R269,600.90 per annum translates to a monthly earnings threshold of R22,466.67.
Employees earning above this amount are no longer automatically entitled to the BCEA’s provisions on overtime pay, meal intervals, rest periods and daily and weekly work hours, among other provisions, unless their contracts or applicable collective agreements provide for better terms.
The increase from the previous threshold is R7,852.45. This may appear modest, but its effect cuts in both directions. Some workers who previously earned above the old threshold of R261,748.45 may now fall below the new figure, meaning they will gain protections they did not previously hold.
Employers are required to identify and update the status of any employee whose earnings sit near the threshold boundary.
Not a minimum wage, and not a cap on what workers earn
The earnings threshold is frequently misread. It does not set a limit on what someone can be paid, nor does it strip workers of all labour protections. Employees below the threshold retain the full benefit of the BCEA’s automatic provisions.
Those above it still have access to the Labour Court and the CCMA, and are protected by the fundamental provisions of the LRA, including the right to fair dismissal and freedom from unfair labour practices, as reported by Cliffe Dekker Hofmeyr.
The threshold affects only specific provisions related to work hours, overtime and leave calculations in the BCEA.
Employers should review employment contracts for affected staff and confirm that the agreed terms meet or exceed the statutory minimums that would otherwise apply.
Timing and what happens next
The publication of the threshold adjustment in the Government Gazette typically follows a review period during the first quarter of the year.
The 1 May effective date has been consistent across recent annual reviews, coinciding with Workers’ Day since at least the early 2020s.
Businesses that have not yet updated their payroll systems and employment contract templates are already out of compliance from today.
The next annual review is expected in the first quarter of 2027, with the revised threshold to take effect from 1 May 2027.
