New overtime threshold takes effect

19 March 2003

Employees who earn more than R115 575 per annum will, from 24 March, not be guaranteed overtime payment by the Basic Conditions of Employment Act.

However, the Department of Labour says overtime payments for such employees can still be made if agreement is reached between employer and employee.

Labour Department spokesman Snuki Zikalala said the move by the department aims to enable workers who earn less than R115 572 per annum to qualify automatically for overtime pay.

The earnings threshold, which applies to both the public and private sector, is the wage level above which employees are excluded from the provisions of the Basic Conditions of Employment Act relating to the payment of overtime. The new threshold represents a R16 117 a year increase on the old level.

The Act stipulates that overtime must be paid at 1.5 times the employee’s normal wage, with the option that an employee may agree to paid time off in return for overtime work.

Senior management employees, employees engaged as sales staff who travel to the premises of customers and who regulate their own hours of work, and employees who work less than 24 hours a month, remain excluded from these overtime provisions.

Source: BuaNews