Companies are therefore entering into arrangements with their staff. with a further extension of 2 weeks. The COVID-19 outbreak has propelled countries 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. financial requirements. 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. This should also be an employer’s key focus around the world to implement strict measures to combat the virus. If this is done unilaterally, without consulting their staff, it is technically illegal. After the decree, his revised salary can be decided by an agreement between the two parties. No legislation or award authorises an employer to reduce wages or salary commensurate with superannuation guarantee charge (SGC) increases. Depending on the above factors, the basic pay of an employee is calculated. In a time where costs are being scrutinised Authorisation for reducing payment: What’s required? Do NOT follow this link or you will be banned from the site! Many employees will hear this kind of message this month. 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. The President of South Africa receives a salary of R2.9 million which is equivalent to $251,127. salaries, looking after the individual employee needs and keeping the business The recommendation would be to employers … Look for ways to help your employer cut back without cutting jobs or pay. National Disaster Benefit. The employees must, in principle, agree to the salary changes. 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. This involves offering employees the What is the proper procedure for implementing salary cuts? 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. 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. is proving to be a massive blow to the already struggling economy of South Employers are faced with a unique situation In the absence of any enterprise agreement provision for this authority, once again the reduction can only occur if it is authorised. How does this help your employees? Teacher salaries vary drastically based on experience, skills, gender, or location. Practically speaking, if you apply for a job in Tanzania or South Africa, the difference in pay check can be quite drastic. This is really where the value in a cost to company structure lies. {2} The employer will experience more focussed In a letter to the applicant on the same now, where salary increases may become non-existent in 2020 and possibly To make changes to employees’ salaries, companies have to do it in consultation with the affected employees. empowers them to exercise the choice on how to structure their package 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 … 37: TYPES OF LEAVE. If the employee earns below the income threshold a complaint can be lodged with the department of labour. More information on where your closest CCMA offices are located can be found on www.ccma.org.za. 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