Paymaster Magazine

Everybody earning less than R 172 000 per year must now be paid overtime

From 1 July 2011 the new threshold contained in the basic conditions of employment act has been increased to R 172 000 a year

Earnings“means an employee’s regular annual remuneration before deductions. It excludes contributions made by the employer in respect of the employee. Where the employee receives subsistence and travel allowances, achievement awards and payment for overtime worked shall not be regarded as remuneration.

What does this mean

1) The following working hours apply

a. Less than 5 days a week 9 hours a day maximum of 45 hours a week

b. More than 5 days a week 8 hours a day maximum of 45 hours a week

2) A meal break of 60 minutes must be given after 5 hours of work. This may be reduced to 30 minutes by agreement or removed if the employees

work less than 6 hours a day

3) There must be a rest period of at least 12 hours between work days and at least 36 hours between work weeks (should include a Sunday unless

otherwise agreed)

4) Night work – workers working between 18H00 and 06H00 must be paid an allowance and must have transport available to them

5) All employees earning less than R 172 000 are now entitled to earn overtime (or be given time off in lieu of overtime paid) according to the basic

conditions of employment act

6) They are also entitled to Sunday pay and payment on public holidays

What should I do

The critical group are those employees who were earning more than R 149 736 and now will be earning less than the R 172 000 per year.

1) These employees should be consulted with, as by law, there working conditions and conditions of employment have changed and where applicable a new remuneration contract should be agreed

2) The company policies and procedures may need to be amended

3) Please check your time and attendance settings for those employees who are eligible for overtime

4) Change any settings that may be required on the payroll

Should you have any questions or need help phone Ian 082 8985006 or email ian@paymaster.co.za

Adrian Baillie-Stewart

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