The new BCEA earnings threshold 2026 of R269 600.90 per year takes effect from 1 May 2026 in South Africa, raising the cut-off above which employees lose access to several core protections under the Basic Conditions of Employment Act. Minister of Employment and Labour Nomakhosazana Meth published the determination as Government Notice 7384 in Government Gazette 54544 on 17 April 2026.
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What the new BCEA earnings threshold 2026 means
The BCEA earnings threshold 2026 sits at R269 600.90 a year, which works out to R22 466.67 a month. That is a 3 percent rise from the previous threshold of R261 748.45. Employees who earn at or below the threshold keep the full set of working-time and overtime protections in the Basic Conditions of Employment Act. Employees who earn above the threshold are excluded from those protections, although every other section of the BCEA, the Labour Relations Act and the Employment Equity Act still applies.
The Minister reviews the threshold annually. Earnings for the test mean regular annual remuneration before deductions, but exclude employer contributions to medical aid, pension, retirement and similar benefits, as well as occasional overtime, gratuities and one-off allowances.
Sections of the BCEA that no longer apply above the threshold
Employees earning above R269 600.90 per year are excluded from sections 9, 10, 11, 12, 14, 15, 16, 17(2) and 18(3) of the Basic Conditions of Employment Act. In plain terms, the excluded provisions cover ordinary hours of work, overtime pay and limits, compressed working weeks, averaging of hours, meal intervals, daily and weekly rest periods, Sunday pay, night work allowances and pay for work on public holidays.
What stays the same above the threshold
All other BCEA protections remain in force. That includes annual leave, sick leave, family responsibility leave, parental leave, notice periods on termination, severance pay, the prohibition on unfair dismissal and the framework for transfer of contracts of employment. The Labour Relations Act, the Employment Equity Act, the Skills Development Act and the Compensation for Occupational Injuries and Diseases Act apply regardless of earnings.
What employers and payroll teams need to do now
Payroll administrators should reapply the new threshold from the May 2026 payroll cycle. HR teams should re-run the threshold test for any employee whose pay package has shifted across the line, and update employment policies that reference the threshold, including overtime policies, time-and-attendance rules and Sunday work practices. Employees who fall just below or just above the new figure may need their contracts reviewed.
The determination was published in the Government Gazette, which is the same statutory channel used for compulsory legal notices in South Africa. Professionals who place statutory notices, such as deceased estate or company notices, can rely on a specialist publisher like Legal Notice Publishing to handle Government Gazette and provincial newspaper placements.
Frequently asked questions
Does the new threshold apply to existing contracts?
Yes. The threshold is a statutory test based on actual earnings, not on contract wording. Existing contracts do not need to be reissued, but employers should communicate the change in writing to affected employees.
Are commissions and bonuses included?
Regular guaranteed pay forms part of the calculation. Discretionary bonuses, occasional overtime and one-off allowances are excluded. Commission paid as part of a structured remuneration package is normally included.
What if my salary changes mid-year?
The threshold test is applied on actual annual earnings. A mid-year increase that pushes an employee above R269 600.90 changes the BCEA position from that point onward. A reduction below the line restores the excluded protections.
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Sources: South African Government newsroom, Cliffe Dekker Hofmeyr Employment Law Alert, Polity
