Basic Conditions Act Update: What It Means for Public Holiday Pay

South African labour law recently reaffirmed important provisions under the Basic Conditions of Employment Act (BCEA) regarding public holiday pay. This update clarifies employees’ rights and employers’ obligations when it comes to working on, or being paid for, public holidays. Understanding these rules is essential for both workers and employers to ensure compliance and fair treatment.

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Public Holiday Pay Entitlements

Under the BCEA, if a public holiday falls on a day an employee would ordinarily work, the employee is entitled to their normal daily wage even if they do not work on that day. This means employees receive pay for the holiday regardless of attendance.

However, if the employee does work on a public holiday that they would normally work, the employer must pay at least double the employee’s normal wage rate for that day. Alternatively, if the employee’s normal wage plus pay for hours worked exceeds double the normal rate, the higher amount must be paid. This protects employees from being underpaid for working on a public holiday.

If the public holiday falls on a day the employee would not ordinarily work, and they do not work that day, no payment is required (“no work, no pay”). But if they do work on such a day, they must receive their ordinary daily wage plus payment for the hours worked.

Employees cannot be compelled to work on a public holiday without prior agreement, either contractual or otherwise. Without such consent, employees have the right to refuse work on public holidays. This protects workers from being forced to work on these designated rest days.

Shift Work and Public Holidays

When a shift overlaps a public holiday and an adjacent day, the day on which the majority of hours are worked determines the pay treatment. If most hours fall on the public holiday, the entire shift is considered worked on that day, and pay rules for public holidays apply.

New Earnings Threshold and Its Impact

Effective 1 April 2025, the BCEA introduced a new earnings threshold of R261,784.45 per annum. Employees earning above this threshold (typically white-collar workers) are excluded from certain BCEA protections, including some related to public holiday pay. This means higher-earning employees may not be entitled to overtime pay or other benefits under the Act.

Public Holiday Substitution

The Public Holidays Act allows employers and employees to agree to exchange a public holiday for another day. This agreement must be mutual and preferably in writing. The substitution changes the day off but does not alter the employee’s entitlement to payment for the holiday.

Special Considerations for Seasonal and Farm Workers

Labour legislation treats permanent and seasonal workers equally regarding public holiday pay. If a public holiday falls on a day a farm worker or seasonal employee would ordinarily work, they must be paid for that day, regardless of employment status. If they work on the holiday, they must receive at least double their daily wage.

Summary

Employees are entitled to full pay for public holidays falling on their normal working days, regardless of attendance.
Working on a public holiday requires at least double pay or the higher of normal plus hours worked.
No work on a non-working public holiday means no pay, unless agreed otherwise.
Consent is required for work on public holidays; employees can refuse without agreement.
Shift overlaps are paid according to where most hours fall.
A new earnings threshold excludes some employees from BCEA protections.
Public holidays can be swapped by mutual agreement without loss of pay.
Seasonal and farm workers have the same public holiday pay rights as permanent employees.

Fair Working Conditions

Employers and employees should familiarise themselves with these rules to ensure fair treatment and legal compliance. For detailed guidance, consulting the BCEA and related labour legislation is recommended.