As of 1 April 2025, South Africans will see the implementation of the increased earnings threshold, determined by the Minister of Employment and Labour, in the amount of R261,748.45 (around R21 800 per month). This represents an increase of R7,376.78 from the previous amount of R254,371.67, which has been in effect since 1 April 2024.
The earnings threshold impacts the application of provisions of the Basic Conditions of Employment Act 75 of 1997 (BCEA), the Labour Relations Act 66 of 1995 (LRA) and the Employment Equity Act 55 of 1998 (EEA). In terms of the BCEA, employees earning more than the earnings threshold are excluded from the provisions, which regulate ordinary hours of work, overtime, compressed working weeks, averaging of hours of work, meal intervals, daily and weekly rest periods, Sunday pay, pay for night work and pay for work on public holidays.
Pragmatism or Missed Opportunity? Insights by Dr. Chris Blair
South Africa’s 2025 budget, unveiled by Finance Minister Enoch Godongwana on 12 March 2025, represents a delicate balancing act amid fiscal constraints, coalition tensions, and a sluggish economy. With a projected GDP growth averaging a modest 1.8% over the next three years and a consolidated budget shortfall of 5% of GDP in the current fiscal year, the National Treasury has opted for a mix of tax hikes, infrastructure investment, and debt management to steady the ship. Yet, as the dust settles on the announcement, one must ask: does this budget deliver for South Africa’s workforce—both in the private and public sectors—and does it pave the way for a prosperous future? For the man in the street, the implications are equally pressing.
Impact on Employees: Private and Public Sectors
Read more: A Strategic Assessment of South Africa’s 2025 Budget:
To have a chance of winning a case at the Labour Court a party must present proof to the judge. What parties do not understand is that they are responsible for presenting clear, relevant and persuasive facts in support of their cases.
It is not up to the judge to bring the evidence or to show that the evidence brought constitutes proven fact. The judge’s job is to assess the strength of the evidence brought by both parties.
While the judge is required by law to give you, via the above process, every opportunity to present the evidence that you have brought you are likely to lose the case if you do not take full advantage of this opportunity.
In the case of Malekunutu vs Joburg Bolt (Lex Info 17 January 2025. Labour Court case number JR1806/21) The employee was retrenched based on the employer’s claim that it was in financial difficulties. The CCMA found that his dismissal was fair.
Read more: PROOF CRUCIAL FOR SUBSTANTIVELY FAIR RETRENCHMENT
Insights by Dr Chris Blair
Negotiating a salary increase is a crucial career skill, yet many employees make mistakes that weaken their chances of success. In South Africa, where structured HR policies typically govern pay progression, employees must approach salary discussions strategically. Industry dynamics also play a role in how salary negotiations unfold, requiring tailored approaches.
Common Mistakes and Their Causes
1. Failing to Prepare and Provide Justification
Many employees request raises based on personal financial needs rather than their contributions. Employers consider market rates, company performance, and individual value. Without data to support their request, employees weaken their argument.
2. Choosing the Wrong Timing
Requesting an increase outside of performance reviews or budget cycles reduces the likelihood of success. HR policies often dictate when raises are considered, so employees should align their requests accordingly.
3. Comparing Themselves to Colleagues
Arguing that a colleague earns more for a similar role is ineffective. Salary differences arise from experience, qualifications, and negotiation skills. A stronger case focuses on personal contributions.
Read more: The biggest mistakes employees make when asking for a salary increase
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