From April 1st, South Africa’s annual earnings threshold has risen to just over R261,000—or R21,800 per month—marking a key shift in how workplace rights are applied.

Beyond the numbers, this legal change could affect your working hours, overtime, and even how you escalate disputes. 

Speaking on Hot Business with Jeremy Maggs and Moneyweb, Malesela Letwaba, an associate in employment law at Cliffe Dekker Hofmeyr, explained how this earnings threshold acts as a line in the sand: earn under it, and you’re legally protected by Chapter 2 of the Basic Conditions of Employment Act (BCEA). 

That includes rights around working hours, overtime pay, Sunday pay, and more. But earn above it? Those protections no longer automatically apply – unless your company voluntarily offers them in your contract or internal policy. So yes, that promotion or pay bump may come with unexpected trade-offs—like working late without overtime or navigating costly labour court procedures rather than the CCMA. 

What the Earnings Threshold Means To Employes 

The goal of this system is to safeguard more vulnerable workers, but for high earners, especially women climbing the corporate ladder, it highlights the importance of knowing exactly what’s in your contract—and negotiating accordingly. 

“Litigation is expensive,” warns Letwaba, “and once you cross that threshold, your route to recourse becomes more complex.” 

As inflation climbs and women increasingly push for parity in pay and workplace conditions, understanding the implications of this earnings line becomes essential. Because real empowerment isn’t just about earning more—it’s knowing what that extra income might cost you in rights. 

Read More: Why women entrepreneurs are still being left behind 

In Closing 

Understanding the earnings threshold is more than a legal necessity—it’s a strategic move for any woman aiming higher in the workplace. Make sure your rights are upheld as the regulations change. For more expert insights like these, tune in to Hot Business with Jeremy Maggs on Moneyweb your go-to source for smart, actionable business talk.