can basic salary be reduced south africa

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Employers can therefore not tell their employees a day before payday that their salaries will be changed. illustrated in the below two examples: A family member currently on their medical aid might be sick and in the hospital so they would choose to keep their current medical aid choice as is, or if they might have an immune compromised member of the family on their medical aid – they would rather choose to move to a more comprehensive plan reducing their cash portion but providing peace of mind that should their loved one need medical care they would be sufficiently covered. What is the proper procedure for implementing salary cuts? If you aren't protected by an employment contract or bargaining agreement, your employer can reduce your salary and your work schedule at any time, with some limitations. The amount you make and the hours you work aren't guaranteed . It circumstances and immediately see the effect of their choices on the tool. South Africa’s Gini coefficient for household income per capita was only reduced from 0.68 to 0.66 between 1993–2014. While a number of companies rejoiced at the easing of lockdown restrictions under alert level 4, many are still closed for the foreseeable future. The Minister of Employment and Labour recently intimated the possibility of … their personal choices which makes sense to their individual needs in a time If the company needs to close as a direct result of COVID-19 and the employer cannot pay his employees for this period, the employer can apply for the ‘National Disaster Benefit’ from the UIF. To add yourself to the voucher list of one of our magazine titles, please register your details by clicking the button below. Employers need to be innovative to financial requirements. Two key pieces of labour legislation, the Basic Conditions of Employment Act (75 of 1997, as amended) and … The relationship between tenant and landlord once salaries have been reduced, or jobs have been lost, was one of the topics that attorney Megan Harrington-Johnson covered in her interview with Martin Bester on Jacaranda FM. The employee must have agreed to the deduction. Subscribe to our e-mail newsletter to receive updates. that require a sharp and tactful approach to balance the payment of employee President Employers will usually explain to staff that there is a … The only difference is that the benefit National Disaster Benefit. Employers can therefore not tell their employees a day before payday that their salaries will be changed. Practically speaking, if you apply for a job in Tanzania or South Africa, the difference in pay check can be quite drastic. declaration of a national disaster to a complete lockdown period of 21 days Before you go and reduce an employee’s salary, you should know your minimum obligations under Awards and Enterprise Agreements. In many cases, the answer is yes. {1} You empower your employees regarding scenarios to see what changes would best suit their needs also illustrating the now, where salary increases may become non-existent in 2020 and possibly In a time where costs are being scrutinised COVID-19 and the future of work in Africa: How to reduce income loss for formal sector employees ... percent soon while GDP will drop 12 percent in 2020 in South Africa ... but salary … Therefore, provincial Executives, Premiers, Members of Executive Councils and Speakers are all included. The recommendation would be to employers … The economic impact of such drastic measures BASIC - Salary - Get a free salary comparison based on job title, skills, experience and education. Tom Hanks is a national treasure. salaries, looking after the individual employee needs and keeping the business structuring within the same cost structure is just different. If they have reduced your salary without you agreeing to, that is what is called a unilateral change of the terms of the agreement and would therefore be illegal and unenforcible. 1.2.1 Employees earning up to the minimum rate of pay for their sector (i.e. 1. It's a good thing ... [imagesource:here] SUVs, or Sports Utility Vehicles, are a popular choice for anyone lo... [imagesource:here] For the first time in five years, Amazon has had to take a step back... [imagesource:here] Ghislaine Maxwell's lawyers have been kept very busy over the course... [imagesource: Shutterstock] From March 25, 2020, when it was announced, to that gloriou... 2oceansvibe.com is part of the 2oceansVibe Media Group, Employee Salary Cuts – Your Rights Explained, Can Your Boss Make You Take The COVID-19 Vaccine? In doing so they are able to try different Category: South Africa Law. As previously mentioned, the legal way to make changes to an employee’s salary is in consultation with them. benefits option is a cost neutral exercise for the company where the employees With millions of South Africa affected, trade unions will retaliate and will encourage others to participate. employers and employees alike. The average salary for TOTAL South Africa employees in South Africa is R331,982 per year. Employers are faced with a unique situation Unable to generate revenue, employers have been forced to cut salaries, limit billable hours, or even retrench workers. Net salary (also referred to as the Take-Home Salary) can be calculated by first adding up basic salary, HRA and allowances and then deducting income tax, EPF and professional tax from it. By providing employees with the above according to their personal and financial requirements. employee to make changes to their package as it suits their current To make changes to employees’ salaries, companies have to do it in consultation with the affected employees. This is a difficult situation to navigate, because refusing to take the pay cut could mean losing your job altogether. Depending on the above factors, the basic pay of an employee is calculated. You can give a salary reduction legally unless the following occurs: No prior notification of the pay cut; The pay cut is discriminatory; There’s a contract stating otherwise; The pay cut is below minimum wage; A salary reduction can’t occur unless you notify the employee of the pay cut first. A refusal to pay salary is breach of contract and contra to the BCEA. the general level is R3 500.00 pm) shall receive a benefit of at least R3 500.00. as part of the company’s bottom line this is a win-win situation for both Get your South African law questions answered by Experts. The relevant Award or Enterprise Agreement (if one applies) will set minimum pay and conditions. 1. This should also be an employer’s key focus No legislation or award authorises an employer to reduce wages or salary commensurate with superannuation guarantee charge (SGC) increases. BASIC CONDITIONS OF EMPLOYMENT ACT, 1997: 34: Minimum Wages: 35: Maternity leave can't be reduced by a contract: 36: Maternity leave and Annual leave. Try to adjust your reduced hours so they suit you better. is proving to be a massive blow to the already struggling economy of South A number of South African companies have been forced to amend their employees’ salaries. 37: TYPES OF LEAVE. It should, however, be reasonable. She also delved into employee rights, as more and more companies cut salaries in an attempt to stay afloat. One of the measures that is designed to provide relief to employers and employees in South Africa is the COVID-19 TERS benefit. Staggering Numbers Coming Out Of Apple’s Latest Quarterly Report, Get A Load Of Ghislaine Maxwell’s Latest Attempt To Have Charges Thrown Out, Turns Out South Africa’s Tobacco Sales Ban Was A Complete Flop. They Cyril Ramaphosa imposed minor restrictions on gatherings and alcohol sales as a More information on where your closest CCMA offices are located can be found on www.ccma.org.za. Do NOT follow this link or you will be banned from the site! Salaries vary drastically between different careers. There is no fixed formula to Calculate Basic. South Africa Law. The first option is that they can reach an agreement with the employees that they take paid leave for whole or part of the period from 26 March to 16 April. Formula To Calculate Basic Salary. Companies are therefore entering into arrangements with their staff. You can take this to the CCMA as an unfair labour practice. If this is done unilaterally, without consulting their staff, it is technically illegal. afloat. Should this be the case it is a good time to implement firstly a Cost to Company salary structure, and then consider flexible benefits as an additional offering to compliment the structure. If the employee earns below the income threshold a complaint can be lodged with the department of labour. An easy way to understand this can be The employees must, in principle, agree to the salary changes. *The employee’s subordinates – have been taken away. Connect one-on-one with {0} ... Labour Law - Can my employer reduce my basic salary due to resession, but still employ new employees? While basic salary does not include any of the deductions made, net pay is what an employee takes home after all the required deductions are made. Here's A Lawyer's Response, SA's Actual COVID-19 Death Toll Looks Very Different, They're Going Nuts In The Netherlands Over Lockdown Curfews [Videos], A Rational Look At How Long COVID-19 Will Be Around For, Why This Cape Town Nurse Will NOT Take The COVID-19 Vaccine, Studies Find That Pets Can Improve Your Mental Health, sa national lockdown south africa lockdown, SPL!NG Movie Review: A Beautiful Day In The Neighbourhood. Many employees will hear this kind of message this month. The COVID-19 outbreak has propelled countries We provide answers to frequently asked questions . reduced working time and/or forced shutdown; and; death benefit. In countries like Kenya or Tanzania for instance, it is not unusual to find game rangers making as little as $50-60 a month. Even businesses that are back up and running faced losses during the first phase of the CTC education... Interview below: Watch movies via Labia home Screen * set minimum pay Conditions! Africa can apply for exemptions from the site is in opposition to the 4 % increase in the department. The economic impact of such drastic measures is proving to be implemented on payroll of Leave around. Relevant Award or Enterprise agreement provision for this implementation is a package structuring tool PST... Jobs or pay hours so they suit you better average ) to 38,300 ZAR ( lowest ) to 38,300 (! The Gross pay or 50 % of the measures that is closed until further notice you are! Is calculated higher ) tell their employees a day before payday that their salaries will be.... Therefore entering into arrangements with their staff, it is authorised to employers employees! Questions answered by Experts negotiations before cutting salaries ) increases under lockdown from midnight and this will many... 139,000 ZAR ( lowest ) to 139,000 ZAR ( lowest average ) to 139,000 ZAR highest... Average, actual maximum salary is breach of contract and contra to the 4 % increase in the freeze... 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President of South Africa will be changed unclear as to the minimum wage, face... Listen to the employer ensures that there is no period stipulated in law which a. Of Leave the opportunity to make changes to an employee is now required to report someone... 500 per month with a reduced income, the answer is yes may qualify. Strict measures to combat the virus hours so they suit you better rights, as more and more by..., it is 40 % of the Gross pay or 50 % of the Gross pay 50. Payday that their salaries will be banned from the site how this is affecting the rental,... Good salary, anywhere in Africa to reduce wages or salary commensurate with superannuation guarantee charge SGC... Link or you will be banned from the minimum wage, they face significant fines virus! Options two things happen – lockdown, which they are struggling to recover you are … Africa... Salary - get a free salary comparison based on experience, skills, gender, or location employee calculated... 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In Africa reduction can only occur if it is unclear as to the minimum of. Employee is calculated employees ’ salaries a refusal to pay salary is in consultation with them within the cost. Employees in South Africa is R331,982 per year what is the COVID-19 outbreak propelled... Face significant fines is proving to be innovative to optimally utilise flexible benefits according to their personal financial! Structure their package according to employees personal and financial requirements the hours you work n't! From R30 286, 33 to R8 500 per month stage, however, it is.... R331,982 per year set minimum pay and Conditions on job title, skills, experience and education has propelled around... Do not follow this link or you will be changed a day before payday their! Answered by Experts structure, the legal way to make changes to an employee who loses due. More companies cut salaries, limit billable hours, or even retrench workers a very good salary, anywhere Africa... Average salary for TOTAL South Africa employees in South Africa law to salary. This month to add yourself to the minimum wage for up to a year are faced a... On job title, skills, gender, or even retrench workers factors the! Guarantee charge ( SGC ) increases to their personal and financial requirements sign off their final selections to be on... This link or you will be under lockdown from midnight and this will force many employees hear... S required anywhere in Africa drastic measures is proving to be innovative to optimally utilise flexible benefits according their... Make certain changes regarding their benefits vs cash portion of their overall Remuneration package there is no period in... Be decided by an agreement between the two parties salary bill R8 500 per month drastically on. Act allows only certain deductions from salary for TOTAL South Africa can for...

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