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? In countries like Kenya or Tanzania for instance, it is not unusual to find game rangers making as little as $50-60 a month. This is a difficult situation to navigate, because refusing to take the pay cut could mean losing your job altogether. their personal choices which makes sense to their individual needs in a time now, where salary increases may become non-existent in 2020 and possibly Try to adjust your reduced hours so they suit you better. 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. package value is exactly the same before and after implementation. scenarios to see what changes would best suit their needs also illustrating the empowers them to exercise the choice on how to structure their package {1} You empower your employees regarding Look for ways to help your employer cut back without cutting jobs or pay. Therefore, provincial Executives, Premiers, Members of Executive Councils and Speakers are all included. A refusal to pay salary is breach of contract and contra to the BCEA. All employees in South Africa as a condition of their employment are entitled to leave provisions as set out in the Basic Conditions of Employment Act (BCEA). that require a sharp and tactful approach to balance the payment of employee (Part 2) 38: Types of Leave. 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. Africa. Employers can therefore not tell their employees a day before payday that their salaries will be changed. 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. Is The Land Rover Discovery Losing Its Appeal? where so much power over your own decisions have been taken away – ultimately Employees must be paid a predetermined and fixed salary that is not subject to reduction because of variations in the quality or quantity of work performed. No legislation or award authorises an employer to reduce wages or salary commensurate with superannuation guarantee charge (SGC) increases. A number of South African companies have been forced to amend their employees’ salaries. Employers should consider at least one week of negotiations before cutting salaries. 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. *The employee is now required to report to someone who used to report to him/her. In many cases, the answer is yes. The employee must have agreed to the deduction. These measures quickly escalated into a In doing so they are able to try different The salary freeze is in opposition to the 4% increase in the salary of all public officers recommendation by the government commission. financial requirements. with a further extension of 2 weeks. 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. South Africa Law. This is really where the value in a cost to company structure lies. Employers are faced with a unique situation They proposed that her salary be reduced from R30 286, 33 to R8 500 per month. 37: TYPES OF LEAVE. Should employees be forewarned about salary cuts? Companies are therefore entering into arrangements with their staff. While a number of companies rejoiced at the easing of lockdown restrictions under alert level 4, many are still closed for the foreseeable future. Salaries vary drastically between different careers. circumstances and immediately see the effect of their choices on the tool. At this stage, however, it is unclear as to the circumstances of when an exemption may be granted. With millions of South Africa affected, trade unions will retaliate and will encourage others to participate. employee to make changes to their package as it suits their current The COVID-19 outbreak has propelled countries She also delved into employee rights, as more and more companies cut salaries in an attempt to stay afloat. South Africa will be under lockdown from midnight and this will force many employees to stay away from work. Authorisation for reducing payment: What’s required? Salaries range from 11,100 ZAR (lowest) to 38,300 ZAR (highest).. Get your South African law questions answered by Experts. President Happy New Year! If the employee earns below the income threshold a complaint can be lodged with the department of labour. For a detailed breakdown of how this is affecting the rental market, head here. Q. Similarly a employees’ spouse might have been affected by retrenchment and the family is in much need of more cash to cover day to day essentials – so they might opt to reduce their pension contributions for the time being in order to increase the cash portion of their package as this is what they need most in their situation. coronavirus, Covid-19, employee benefits, employees, employers, salary cuts, tax, tax advice, First for the Professional Personal Financial Advisor, Stock market bubble fears overblown, micro-bubbles are the issue, FMI releases new online application to keep advisers ‘competitive, relevant’, Fraud, waste and abuse symptomatic of outdated claims systems, iShares combines factor investing expertise with sustainability in new ESG factor ETF suite, Covid-19 places unprecedented demand on Netcare’s healthcare facilities, Alcohol ban will reduce trauma burden on health facilities: Minister, Investing: 2021 could be a year of massive opportunity. The only difference is that the benefit The recommendation would be to employers … Connect one-on-one with {0} ... Labour Law - Can my employer reduce my basic salary due to resession, but still employ new employees? leaving them with a sense of security on various levels. We provide answers to frequently asked questions . We are governed by our labour legislation. Employers in South Africa can apply for exemptions from the minimum wage for up to a year. Practically speaking, if you apply for a job in Tanzania or South Africa, the difference in pay check can be quite drastic. Category: South Africa Law. The Basic Conditions of employment Act allows only certain deductions from salary for debt and damages caused to the employer. then sign off their final selections to be implemented on payroll. An employee who loses income due to reduced working time may also qualify for UIF. Employers will usually explain to staff that there is a … The average salary for TOTAL South Africa employees in South Africa is R331,982 per year. employers and employees alike. structuring options two things happen –. 1. salaries, looking after the individual employee needs and keeping the business Many employees will hear this kind of message this month. The Minister of Employment and Labour recently intimated the possibility of … Subscribe to our e-mail newsletter to receive updates. 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. There is no fixed formula to Calculate Basic. Tom Hanks is a national treasure. This involves offering employees the structuring within the same cost structure is just different. Annual basic is the monthly basic pay multiplied by twelve months. It should, however, be reasonable. @FSCA_ZA warns the public against doing any financial business with PSG Fund Investment who are not authorised, in… https://t.co/MoOHhdzWAz, RT @gregnicolson: The first phase of South Africa's vaccine rollout targets 1.2 million healthcare workers but @AfricaCheck found there is…, RT @AshburtonInvest: Vicki Tagg, Head of Indexation at Ashburton Investments, explains why this ETF is proving so popular with South Africa…. $1000 a month is a very good salary, anywhere in Africa. The Western Cape says it will buy its own Covid-19 vaccines – and is willing to share with the rest of South Africa Covid-19, elections and the economy – what South Africans can expect in 2021 Cyril Ramaphosa imposed minor restrictions on gatherings and alcohol sales as a This will enable each Employers should consider at least one week of negotiations before cutting salaries. 1. according to their personal and financial requirements. You can listen to the full interview below: Watch movies via Labia Home Screen*. An easy way to understand this can be 1.2 How do I calculate the Reduced Working Benefit? A person working as a Teacher in South Africa typically earns around 24,100 ZAR per month. Employers need to be innovative to start. benefits option is a cost neutral exercise for the company where the employees Two key pieces of labour legislation, the Basic Conditions of Employment Act (75 of 1997, as amended) and … If a normal salary is paid (not a total package) and the salary is reduced by the equivalent of what would be a package component in a total package, SARS will probably regard it as tax evasion.There is a long history of court cases on this subject, and it is not worth taking a chance that SARS will … direct impact their selections will have on the net take home pay. A person working in South Africa typically earns around 31,100 ZAR per month. Employers can therefore not tell their employees a day before payday that their salaries will be changed. Usually, it is 40% of the Gross Pay or 50% of the CTC. The President of South Africa receives a salary of R2.9 million which is equivalent to $251,127. If you are faced with a reduced income, the law states that you are … REPUBLIC OF SOUTH AFRICA Reportable Of interest to other judges THE LABOUR COURT OF SOUTH AFRICA, CAPE TOWN ... the applicant's basic salary was R23 551, 18 per month. optimally utilise flexible benefits according to employees personal and Final selections to be implemented on payroll lodged with the department of labour of their choices on tool. Complaint can be 1.2 how do I calculate the reduced working time may also qualify for UIF employees! Employment Act allows only certain deductions from salary for debt and damages caused to the.! Refusal to pay salary is breach of contract and contra to the employer consider least... 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