CALCULATION OF LEAVE BONUS, ANNUAL SHUT DOWN, 2018 WAGE INCREASES AND ALLOWANCES

CALCULATION OF LEAVE BONUS, ANNUAL SHUT DOWN, 2018 WAGE INCREASES AND ALLOWANCES

By Stephen Khola, National Labour Relations & HR Director

The annual December recess is almost upon us and soon the electrical industry will be closing for the holidays and employees will be going on leave. Employers should please note the following important points:

INDUSTRY SHUTDOWN

Our industry’s annual shutdown in December coincides with the building industry holiday period. The building industry will officially close at the end of the shift on Friday, 15 December 2017 and re-open on Monday, 15 January 2018. The electrical contracting industry will thus observe its annual shutdown during this period.

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

235

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/she 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

235

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

The applicable leave bonus days per area are appended below as Annexure A.

2018 WAGE INCREASES

Please note that the following increases are to be implemented for the period 1 February 2018 to 31 January 2019.

  • All employees earning the prescribed minimum wages shall receive an increase no less than 5.6%.
  • All other the employees earning more than the prescribed minimum wages shall receive an increase no less than 4.6%.

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 2018 may be off-set by the employer when calculating the guaranteed minimum increase.

INCREASES TO ALLOWANCES FROM 1 FEBRUARY 2018

Transport Allowance

An employee using his own vehicle for official purposes shall be paid a transport allowance in the amount of R3.17 per kilometre.

Subsistence Allowance

The subsistence allowance shall be increased to R127.02 per night.

Stand – by allowance

The stand by allowance shall be increased to R83.28 per shift.

COLLECTIVE AGREEMENT

A copy of the Council’s Main Collective Agreement is available on the Council’s website at www.nbcei.co.za.

CONCLUSION

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

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