What's changed in South African labour compliance

Three changes now sit on every HR compliance file. The Employment Equity Amendment Act 4 of 2022 brought in mandatory five-year sectoral numerical targets from April 2025, replacing employer self-set targets. The National Minimum Wage rose to R30,23 an hour from 1 March 2026. And the BCEA earnings threshold, which determines who gets automatic overtime and working-time protection, rose to R269,600.90 a year from 1 May 2026.

Reviewed by TefCo Compliance Research — last verified 15 September 2026.

In short

Sectoral employment equity targets replace self-set targets

The Minister of Employment and Labour, acting under section 15A of the Employment Equity Act 55 of 1998, published the Determination of Sectoral Numerical Targets on 15 April 2025 (dated 10 April 2025), identifying 18 national economic sectors — from Agriculture, Forestry and Fishing to Wholesale and Retail Trade — and setting numerical targets for each. Before this notice, designated employers set their own numerical targets in their employment equity plans; the sector target is now the reference point the Department measures against.

The Employment Equity Amendment Act 4 of 2022, which brought the sectoral targets mechanism into force, also narrowed the definition of designated employer to exclude businesses with fewer than 50 employees (regardless of turnover) from 1 January 2025, and introduced an EE compliance certificate needed by businesses wanting to do work with the state.

The sectoral targets are described as a five-year determination. Employers should check the current Department of Employment and Labour notice for their specific sector's numbers rather than relying on an employer-set target carried over from an old EE plan.

National Minimum Wage: R30,23 an hour from 1 March 2026

The Minister increased the statutory National Minimum Wage from R28,79 to R30,23 for each ordinary hour worked, effective 1 March 2026, under section 6 of the National Minimum Wage Act 9 of 2018. Farm workers and domestic workers are entitled to the same R30,23 rate. Expanded Public Works Programme workers move to a separate rate of R16,62 per hour, and learnership agreement allowances are published separately by the Department.

BCEA earnings threshold rises to R269,600.90

The Minister redetermined the earnings threshold under section 6 of the Basic Conditions of Employment Act 75 of 1997 on 17 April 2026, raising it from R261,748.45 to R269,600.90 per year (R22,466.74 per month), effective 1 May 2026. Employees earning above the threshold remain excluded from the BCEA's automatic working-time protections — ordinary hours, overtime, compressed working weeks, averaging of hours, meal intervals, daily and weekly rest periods, Sunday pay, and parts of the night work and public holiday provisions.

Because the threshold moves each year, employees who were just above the old threshold and excluded from overtime pay may fall below the new one and become entitled to it — payroll classifications need to be rechecked against each year's notice, not carried forward automatically.

Frequently asked

Do the sectoral employment equity targets override an employer's own EE plan?

The sectoral targets are the reference point the Department measures compliance against; a designated employer's plan should be aligned to its sector's determined target rather than to a self-set number chosen independently.

Does the higher National Minimum Wage apply to domestic and farm workers too?

Yes — the 2026 increase to R30,23 per hour applies equally to farm workers and domestic workers; only Expanded Public Works Programme workers and learnership allowances are set at different rates.

What changes for an employee whose salary sits between the old and new BCEA threshold?

From the effective date of the new determination, that employee falls back under the BCEA's automatic working-time protections — including overtime pay — because their earnings are now below the new threshold, even though they were above the old one.

Sources

TefCo Corporate Compliance (Pty) Ltd is a compliance management platform, not a legal, tax or advisory firm. This guide is general information, not advice. Fees, dates and thresholds change — confirm current figures with the regulator before you rely on them.

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