Notice
The Minister of Employment and Labour raised the annual BCEA earnings threshold to R 224,080.48 per annum with effect from 1 March 2022
Information and Implications
In a gazette published on 9 February, Employment and Labour Minister, Thulas Nxesi announced that the new earnings threshold will increase to R224,080.48 per year (approximately R18,673 per month) from 1 March 2022. Previously, the earnings threshold was R211,596.30 per year (approximately R17,633 per month). Accountants should consider the impact of the increase and that certain employees might now fall under thew legal requirements from 1 March 2022, where they might have been excluded previously. Find the gazette Here.
Context for the beginner
The earnings threshold is the ‘dividing line’ where certain provisions of the Labour Relations Act (LRA) and the Employment Equity Act (EEA) apply. In terms of the Basic Conditions of Employment Act (BCEA), all employees earning in excess of the earnings threshold, are excluded from the ambit of certain sections of the BCEA, which primarily deal with:
- ordinary hours of work
- overtime;
- and the total tax value of employees’ income tax certificates, for the respective period.
There are 2 ways of submitting the EMP501 reconciliation:
- SARS efiling
- SARS E@syfile (the only option for more than 50 employees)
Need assistance
Should you require assistance with your EMP501 you can find an accountant HereÂ
