26 Oct Know your Rights: How Do You Calculate Salaries & Wages?

Know Your Rights:

How Do You Calculate Salaries & Wages?

What the Law says:

Chapter 4, Section 35 of The Basic Conditions of Employment Act No.75 of 1997, as amended in 2020 is part of the new amendment, and states:

Calculation of remuneration and wages: Section 35

1 Wages are calculated by the number of hours ordinarily worked.
2 Monthly remuneration or wage is four and one-third times the weekly wage.
3 If calculated on a basis other than time, or if the employee’s remuneration or wage fluctuates significantly from period to period, any payment must be calculated by reference to remuneration or wage during⎯
   (a) the preceding 13 weeks; or
   (c) if employed for a shorter period, that period.
4 Employers and employees should consult a schedule published in the Government Gazette to determine whether a particular category of payment forms part of an employee’s remuneration for the purpose of calculations made in terms of this Act.

The Department of Labour provides a very comprehensive Contract of Employment Template, which can be downloaded here:-

Sample – Employment Contract

(You can download a full copy of the Act Basic Conditions of Employment Act No  here)

Disclaimer: RESOURCE recruitment is not a Labour Consultancy and is not giving Labour Advice.  The above information is freely available on the Department of Labour and CCMA website, and any legal advice should be sought from a legal professional.