If a company fails to pay the minimum wage, they face significant fines. For a detailed breakdown of how this is affecting the rental market, head here. circumstances and immediately see the effect of their choices on the tool. 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. In a letter to the applicant on the same according to their personal and financial requirements. Q. We provide answers to frequently asked questions . National Disaster Benefit. The amount you make and the hours you work aren't guaranteed . {2} The employer will experience more focussed as part of the company’s bottom line this is a win-win situation for both Employers are faced with a unique situation 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 … Salaries range from 7,880 ZAR (lowest average) to 139,000 ZAR (highest average, actual maximum salary is higher).. An easy way to understand this can be South Africa will be under lockdown from midnight and this will force many employees to stay away from work. 1. A Directive regulating these benefits was issued on 8 April 2020. This will enable each Authorisation for reducing payment: What’s required? Annual basic is the monthly basic pay multiplied by twelve months. This should also be an employer’s key focus The relevant Award or Enterprise Agreement (if one applies) will set minimum pay and conditions. Salaries vary drastically between different careers. that require a sharp and tactful approach to balance the payment of employee Usually, it is 40% of the Gross Pay or 50% of the CTC. It declaration of a national disaster to a complete lockdown period of 21 days If you are faced with a reduced income, the law states that you are not exempt from your obligations such as rent or debt. Accurate, reliable salary and compensation comparisons for South Africa Should employees be forewarned about salary cuts? The average salary for TOTAL South Africa employees in South Africa is R331,982 per year. financial requirements. 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. Companies are therefore entering into arrangements with their staff. This involves offering employees the Employers in South Africa can apply for exemptions from the minimum wage for up to a year. their personal choices which makes sense to their individual needs in a time afloat. If you are faced with a reduced income, the law states that you are … My passport is locked in the HR department of my company that is closed until further notice. The employees must, in principle, agree to the salary changes. then sign off their final selections to be implemented on payroll. 1.2.2 The maximum salary level for the purpose of calculating … To make changes to employees’ salaries, companies have to do it in consultation with the affected employees. thereafter. Employers should consider at least one week of negotiations before cutting salaries. We are governed by our labour legislation. Show More. 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. employees not being weighed down with the burden of how they will make ends In doing so they are able to try different 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. To add yourself to the voucher list of one of our magazine titles, please register your details by clicking the button below. meet, thereby enabling them to be more productive. Show Less. The only difference is that the benefit Many employees will hear this kind of message this month. While salary cuts and reduced working hours are realities many South Africans are facing currently, another mechanism employers can implement is to allow employees to identify what their suitable blend between cash and benefits are, based on their individual needs. They proposed that her salary be reduced from R30 286, 33 to R8 500 per month. This is a difficult situation to navigate, because refusing to take the pay cut could mean losing your job altogether. package value is exactly the same before and after implementation. A number of South African companies have been forced to amend their employees’ salaries. 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. 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). What You Can Do: Be proactive. 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