Creative Hospitality Management

Hospitality Industry Specialists

Basic Conditions of Employment Act threshold to increase from July 2011

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The Minister of Labour, in terms of Section 6(3) of the Basic Conditions of Employment Act 1997 has determined that all employees earning in excess of R172 000.00 per annum be excluded from sections 9, 10, 11, 12, 14, 15, 16, 17(2), 18(3) of the Act with effect from 1 July 2011.

For the purposes of this notice – “Earnings” means the regular annual remuneration before deductions, i.e. income tax, pension, medical and similar payments but excluding similar payments (contributions) made by the employer in respect of the employee: Provided that subsistence and transport allowances received, achievement awards and payments for overtime worked shall not be regarded as remuneration for the purpose of this notice. This determination replaces the determination published under Government Notice R 300 in Government Gazette No 30872 on 14 March 2008.

Section Headings – Chapter 2

  • 9 – Ordinary hours of work
  • 10 – Overtime
  • 11 – Compressed working week
  • 12 – Averaging of hours of work
  • 14 – Meal intervals
  • 15 – Daily and weekly rest period
  • 16 – Pay for work on Sundays
  • 17(2) – Night work
  • 18(3) – Public holidays

2. Hospitality Minimum Wage Schedule 2011/2012

Below an internal (DOL) copy of the Hospitality Minimum Wage Schedule received this pm from the Department of Labour.

Table 1:   Minimum wages for employers with 10 or less employees

Minimum rate for the period: 1 July 2011 to 30 June 2012

Monthly: R2084-52

Weekly: R481-10

Hourly: R10-70

Table 2:   Minimum wages for employers with more than 10 employees

Minimum rate for the period: 1 July 2011 to 30 June 2012

Monthly: R2323-87

Weekly: R536-34

Hourly: R11-92

N.B.: The current wage increases have been determined by utilizing the CPI (excluding owners’ equivalent rent) reported by Stats SA on 17 May 2011.  The current level of CPI is 4,2%. The wage increase is therefore determined by adding 4,2% plus 1% as stated in the current Sectoral Determination.  The total increase is 5,2%

Compiled by:

Peter Cumberlege

 

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