The South African Revenue Authority defines remuneration as any amount of income paid or payable to a person in the form of wages, holiday pay, wages, overtime pay, bonuses, tips, commissions, fees, salaries, annuities, pension supplements, pension supplements or scholarships, in cash or otherwise, and whether or not they are provided in connection with services rendered. Employment contracts, collective agreements and remuneration Collective agreements can also have a direct influence on the issue of remuneration. Even in situations where there is no collective agreement, the parties generally prefer to address the issue of compensation in an appendix to the main agreement. The annex can then be amended if necessary without having to renegotiate and conclude the entire contract. The following payments are included in an employee`s remuneration: (a) housing or housing allowance received in kind, (b) car allowance, (c) cash payments to an employee, (d) any other benefit in kind received by an employee, (e) employer contributions to medical assistance, pension fund or similar schemes: (f) the employer`s contributions to funeral or death plans. When calculating vacation pay, severance pay or termination pay in the event of earnings fluctuations, it is important to understand the term “compensation” and what is included and excluded by AECB. However, the SARS definition does not provide a clear indication of what is included and excluded under the term “remuneration” within the meaning of the Basic Conditions of Employment Act No. 75 of 1997 (BCEA). The employee`s remuneration should also be agreed in the employment contract, taking into account that the employee`s base wage rate may change. The term “remuneration” within the meaning of the BCEA, as amended, and other labour laws includes all benefits in cash and/or in kind, or both, provided or due to one person in exchange for work for another person, including the State. It follows from that definition that, in order to be recorded in `remuneration`, a payment must, on the one hand, take the form of cash (money) or benefits in kind (social benefits and employer contributions) and, on the other hand, in return for work performed. After examining the Commission`s report and recommendations, the Minister may adopt a sectoral definition for one or more sectors and territories and provide for the adjustment of remuneration in the form of minimum remuneration or minimum increases.
An employee`s salary is calculated based on the number of hours they normally work. In order to calculate the wage rate per time, it is necessary to know that an employee (to be entitled to his full salary) must work 45 hours a week and nine hours a day (seven and a half hours for those who work 6 days a week). An employee`s monthly salary is four and a quarter of his or her weekly salary. Discrimination in relation to wage differences All benefits in cash or in kind paid for the work performed, such as salary/salary/cash component, overtime, commissions, performance bonuses and annual bonuses (if guaranteed), are included in the remuneration of the BCEA. If remuneration is paid to enable the employee to work, it must be excluded from the remuneration of the BCEA. However, if this is the result of the work done, it will be included. An employer should provide payslips to all employees in the workplace during working hours or within 15 minutes of the start or end of that working time. It must contain the following information: * Name and address of employer * Name and occupation of employee * Period for which payment is made* Remuneration of employee in cash* Amount and purpose of any deduction from remuneration* The actual amount paid to the employee.
An employer may require an employee to repay an overpayment due to an error in the calculation of the employee`s remuneration. The following are not included in the employee`s remuneration for the purposes of these calculations: (a) benefits in cash or in kind provided to enable the employee to work, (b) removal allowance, (c) tips (e.g. tips from customers) and gifts from the employer, (d) share incentive schemes, (e) discretionary payments not related to the employee`s time worked or performance; (f) entertainment allowance; (g) an education or education allowance. A ministerial communication under Article 35(5) of the ECB, published in the Official Journal on 23 May 2003, confirms which payments are included and excluded in an employee`s remuneration for the calculation of holiday pay pursuant to Article 21, compensation in lieu of dismissal pursuant to Article 38 and redundancy pay pursuant to Article 41; This section came into force on 1. It entered into force in July 2003; If there have been fluctuations in income, it would appear, at least on the face of it, that subsection 35(4) of the BCEA should apply. This section provides that, (4) If the remuneration or wages of an employee is calculated, in whole or in part, on a basis other than time, or if the remuneration or salary of an employee varies significantly from period to period, any payment to that employee within the meaning of this Act shall be determined on the basis of the employee`s remuneration or salary during – (a) the preceding 13 weeks; or (b) if the employee has been employed for a shorter period, that period. The difference between pay and pay shall constitute unjust discrimination only if it is based directly or indirectly on race, sex, sex, disability or any other enumerated or arbitrary ground. The employer can justify the value attached to an activity by means of a sectoral provision applicable to him. In addition, differential terms and conditions of employment do not constitute unjust discrimination if the difference is just and rational and is based on one or more of the following grounds: Relevant for the calculation of the employee`s remuneration, the supporting documents must also include:* Information on the employee`s rate of pay and overtime rate* The number of ordinary hours worked by the employee during the period and hours additional * The number of hours worked by the employee on a Sunday or public holiday during this period* An agreement was reached on the average hours of work, the total number of ordinary hours and the overtime worked by the employee during the average time period.
The term “remuneration” within the meaning of the Basic Conditions of Employment Act No. 75 of 1997 (BCEA), as amended, and other labour laws includes any payment in cash or in kind, or both, made or due to one person in exchange for work for another person, including the State. The minimum wage is set for the following sectors: domestic work, wage cleaning, private security, wholesale and retail trade, agricultural work, forestry, taxi, apprenticeship, hospitality, civil engineering and child labour in advertising, artistic and cultural activities. The Conditions of Employment Commission advises the Minister of Labour on a variety of matters, including sectoral minimum wage provisions.