2019 INCREASES IN WAGES AND ALLOWANCES, THE CALCULATION OF LEAVE BONUSES, THE ANNUAL SHUT DOWN AND THE NEW MINIMUM WAGE ACT

2019 INCREASES TO WAGES AND ALLOWANCES, THE CALCULATION OF LEAVE BONUSES, THE ANNUAL SHUT DOWN AND THE NEW MINIMUM WAGE ACT THAT COMES INTO FORCE IN JANUARY 2019

By Stephen Khola, National Labour Relations & HR Director

The annual festive recess is almost here and the industry will soon shut down and employees will go on leave. Members should take note of the following important points regarding the industry shutdown; leave and annual pay; leave bonuses; increases in wages and allowances; and the new Minimum Wage Act that will come into force in January 2019.

INDUSTRY SHUTDOWN

The electrical contracting industry will observe its annual shutdown at the end of the shift on Friday, 14th December 2018 and re-open on Monday, 14 January 2019. All public holidays (in terms of Section 2A of the Public holidays Act) that fall over this period shall be paid public holidays.

LEAVE AND LEAVE PAY

Employees proceeding on leave shall be paid their leave pay calculated as follows:

Number of completed shifts in present leave cycle x 15 x ordinary daily remuneration

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Please note:

  1. Any period during which an employee was off sick for up to a maximum of 18 shifts per annum shall count as a qualifying period for annual leave.
  2. During the member’s annual leave period, all usual contributions must be deducted from each employee’s annual leave pay and paid over to the Council together with the employer’s contributions.
  • An employee with five or more years of service with the same employer, shall be entitled to an additional one week’s leave, to be taken at a time mutually agreed on between the employer and employee.

LEAVE BONUS

In addition to leave pay, an employee automatically qualifies for a bonus of applicable number of days if he has completed 200 shifts with the same employer in the current leave cycle and is in the service of that employer at the time that the bonus is due and payable.

Such leave bonus is calculated as follows:

Number of completed shifts x applicable leave bonus days to employee x daily remuneration

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The applicable leave bonus days per wage area and category of employee are to be found in Clause 6, Part II of the Collective Agreement (www.nbcei.co.za).

Periods of absence on account of sickness aggregating not more than 18 shifts in any one qualifying period for the leave bonus shall count for the leave bonus.

2019 WAGE INCREASES

Please note that the following increases are to be implemented for the period 1 February 2019 to 31 January 2020.

  • All employees earning the prescribed minimum wages shall receive an increase no less than 6.1%.
  • All other the employees earning in excess of the prescribed minimum wages shall receive an increase no less than 5.1%.

OFFSET

The guaranteed minimum wage increases referred to above, shall be subject to the provision that any wage increases granted on or after 1 January 2019 may be off-set by the employer when

INCREASES TO ALLOWANCES FROM 1 FEBRUARY 2019

  • Transport Allowance

An employee using his/her own vehicle for official purposes shall be paid a transport allowance in the amount of R3.36 per kilometre.

  • Subsistence allowance

The subsistence allowance shall be increased to R134.77 per night.

Stand-by allowance

The stand-by allowance shall be increased to R88.36 per shift.

THE COMING INTO OPERATION OF THE NATIONAL MINIMUM WAGE ACT

The National Minimum Wage Act of R20 per ordinary working hour will come into operation on 1 January 2019. This means that from this date, no employee shall be paid less than the prescribed minimum wage per hour despite the provisions of any collective agreement. Any employer who wishes not to comply with the national minimum wage provision shall have to apply to the Department of Labour for an exemption.

More on this will be shared with you in Wired in January 2019.

The ECA(SA) takes this opportunity to wish all a blessed, safe and restful festive recess.

 

 

 

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