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THE NEW EARNINGS THRESHOLD: WHY R269,600.90 MATTERS IN 2026

As of 1 May 2026, the BCEA earnings threshold has officially increased to R269,600.90 per annum, or approximately R22,466.74 per month.

At first glance, this 3.1% increase may seem like a routine payroll adjustment. In reality, it has immediate legal implications for thousands of South African employers, particularly those with supervisors, coordinators, administrators, and junior management staff earning close to the threshold.


Because once an employee earns below the threshold, several protections under the Basic Conditions of Employment Act (BCEA) apply automatically, regardless of job title.

What Protections Apply Below the Threshold?


Employees earning below R269,600.90 are generally entitled to:

  • Overtime pay at 1.5 times their normal rate, or paid time off by agreement

  • A meal interval after five continuous hours of work

  • Daily and weekly rest periods

  • Additional protections relating to work on public holidays and Sundays


This is where many employers face hidden risk.

An employee may hold a “management” title and still legally qualify for overtime and other BCEA protections if their earnings fall below the threshold.

The law looks at earnings, not status or seniority.


The Real Compliance Risk

One of the biggest issues in 2026 is that employees who were previously above the threshold may now fall below it without any change to their role.

For example:

An employee earning R265,000 per year may previously have been treated as threshold exempt. As of 1 May 2026, that same employee now falls within the protected bracket.

If overtime is not being paid correctly after the threshold adjustment, the employer may already be in breach of the BCEA.


Why Employers Should Act Immediately

Businesses should urgently review:

  • Payroll structures

  • Employment contracts

  • Overtime practices

  • Shift scheduling

  • Public holiday payment rules


Failing to reassess threshold exposure annually can result in:

  • Retrospective overtime claims

  • Labour disputes

  • CCMA referrals

  • Department of Employment and Labour scrutiny


The Critical Question

The most important question employers should ask is not:

“Who earns above the threshold?”


It is:

“Which employees quietly moved below it without us updating our payroll and HR practices?”

Because in 2026, compliance failures linked to the earnings threshold are less about deliberate misconduct and more about outdated assumptions built into business systems.


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