Budget Speech 2023/2024
The South African Minister of Finance, Enoch Godongwana, delivered the National Budget Speech on 22 February 2023. Click here for the FHBC electronic tax guide.
National Minimum Wage increase effective 1 March 2023
The Minister of Employment and Labour published a Government Notice (No. 3096, 21 February 2023) increasing the national minimum wage from R23.19 per hour to R25.42 per hour effective 1 March 2023.
The R25.42 per hour rate also applies to farm workers and domestic workers, an increase from R23.19. While the rate per hour for workers employed on an expanded public works programme is R13.97, an increase from R12.75.
Additionally, schedule 2 of the Government Notice indicates new rates for workers who have concluded learnership agreements contemplated in section 17 of the Skills Development Act, 1998 (Act No. 97 of 1998).
If your company claims Employment Tax Incentive (ETI), remember to update your ETI Minimum Wage Codes in March to align to the new wage increase.
BCEA earnings threshold increase effective 1 March 2023
The Minister of Employment and Labour published a Government Notice (No. 3067, published 20 February 2023) increasing the BCEA earnings threshold from R224 080.48 per annum to R241 110.59 per annum effective 1 March 2023.
Therefore, effective 1 March 2023, employees earning in excess of R241 110.59 per annum are excluded from sections 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) and 18(3) (public holidays not ordinarily worked) of the BCEA.
For the purpose of this, “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.
“Remuneration” is defined in the BCEA (Basic Conditions of Employment Act) as any payment in money or in kind, or both in money and in kind, made or owing to any person in return for that person working.
OID Earnings threshold effective 1 March 2023
The Director General of Employment and Labour published Government Notice 1617 of 2023 on 17 February 2023 increasing the OID earnings threshold from R529 264 per annum to R563 520 per annum.
Low or Interest Free Loan/Debt Fringe Benefit – New Repo Rate Effective February 2023
The Repurchase rate (repo rate) has increased from 7% to 7.25% on 27 January 2023. As from February 2023, the ‘low or interest free loan/debt’ fringe benefit should be calculated by using the new ‘official interest rate.
Extension date for the 2022 Return of Earnings Submission (March 2022 – February 2023)
The Director General of Employment and Labour published a Government Notice extending the deadline for the 2022 Return of Earnings (Financial year 2022/2023) submission from 1 April 2023 to 31 May 2023.
The online ROE online submission portal, will be open for submission from 1 April 2023. Usually the deadline (as per the legislation) is 31 March.