Salary Increase and the BCEA Earnings Threshold 2026: What Employers Need to Know

“Salary increase” — the one phrase that instantly boosts morale, sparks excitement, and gets everyone planning their next upgrade in lifestyle 😂

But here’s the catch… not every salary increase is as straightforward as it seems.

From 1 May 2026, the Basic Conditions of Employment Act (BCEA) earnings threshold increases to R269,600.90 per year (±R22,467 per month). And this small shift can quietly change employee rights, employer obligations, and payroll costs overnight. 😬

📊 Why the BCEA Threshold Matters

The threshold determines who qualifies for certain statutory protections under the BCEA.

Employees earning below the threshold are entitled to protections such as:

  • ✅ Overtime pay
  • ✅ Regulated working hours
  • ✅ Meal intervals and rest periods
  • ✅ Sunday and public holiday pay
  • ✅ Night work allowances

Employees earning above the threshold generally rely on their employment contract, rather than automatic BCEA protections for these items.

What Changes in 2026?❗

Planning a salary increase around May? Timing matters more than ever.

A small adjustment could:

  • Push employees above the threshold → losing automatic overtime rights
  • Keep employees below the threshold → retaining full BCEA protections
  • Trigger unexpected payroll costs

👉 In short: A routine salary review can suddenly become a compliance issue.

Key Questions Employers Ask❓

Who is covered by the Basic Conditions of Employment Act?

The BCEA applies to most employees and employers in South Africa, across industries and sectors.

✔️ This includes:

  • Full-time and part-time employees
  • Domestic workers
  • Farm workers
  • Temporary and fixed-term employees

The Act sets minimum employment standards, contracts can improve on these, but not reduce them.

Who are excluded from BCEA employees?

Certain categories fall outside full BCEA protection:

  • ❌ Members of the South African National Defence Force
  • ❌ Members of the National Intelligence Agency and South African Secret Service
  • ❌ Unpaid volunteers working for charities
  • ❌ Independent contractors (not true employees)

⚠️ Important nuance:
Some high-earning employees above the threshold are not fully excluded from the BCEA, but specific provisions (like overtime and working hours) do not apply to them.

What is the BCEA threshold in South Africa?

As of 1 May 2026, the threshold is:

  • 💰 R269,600.90 per year
  • 📅 Approximately R22,467 per month

This figure is set by the Minister of Employment and Labour and reviewed periodically.

⚖️ Why Staying Ahead Matters

Waiting until May might seem harmless… but proactive planning gives you control:

  • ✅ Avoid surprise overtime liabilities
  • ✅ Keep payroll compliant
  • ✅ Adjust contracts before issues arise
  • ✅ Reduce admin pressure
  • ✅ Maintain strong employee relationships

📋 Quick Employer Checklist

Before implementing any salary increase, make sure to:

  • ☑️ Review employees earning between R21,800 – R23,000/month
  • ☑️ Assess impact on overtime eligibility
  • ☑️ Update employment contracts where needed
  • ☑️ Align payroll systems before 1 May 2026
  • ☑️ Budget for possible cost increases

🧠 Final Thoughts

A salary increase should always be good news, not a compliance headache.

Understanding the BCEA threshold ensures you protect both your business and your team, while avoiding unintended consequences.

Call the Go2 Accountants for the best advise on how to handle these changes, with accurate payroll processing and to stay compliant.