Stay abreast of local payroll trends and international market fluctuations and ensure your business administration policies remain current and legally compliant.
At Contraserv, we provide a comprehensive outsourced payroll service
We are proudly South African, you can trust our team of experts to handle all your payroll needs, including reporting, declarations and statements. Our commitment is to find the system that allows you to shift your focus from administration to business goals.
Keep informed, remain flexible, and invest in opportunities to adapt your business strategies and achieve growth.
Understanding South Africa’s Payroll Changes | 2024 Update
21 February 2024 | Budget Speech Payroll Highlights
Finance Minister, Mr Enoch Godongwana, presented the Annual Budget Speech to Parliament at Cape Town City Hall in February. He announced no huge tax hikes and delivered a national budget focused on balancing economic growth with support for the vulnerable.
Statutory changes impacting business payroll are outlined below:
• prescribed travel reimbursement rate increased to R4.84 per km (from R4.64), effective 1 March 2024
• global minimum corporate tax implemented, and multinational corporation tax rate set at least 15%
• personal income tax rates, thresholds, and rebates unchanged
• medical scheme tax credits unchanged (main member at R364 per month)
• Section 12H Learnership Tax Incentive extended by three years to 31 March 2027
31 August 2024 | TLAB Closed for Public Comment
The Employment Tax Incentive (ETI) Act clamps down on companies abusing employee incentive programs.
• possible business audits for incentive claims
• robust documentation and proof of eligibility requirements suggested
• changes operational for periods starting 1 March 2025
1 September 2024 | Two-pot Retirement System Implemented
President Cyril Ramaphosa signed into law the Pension Funds Amendment Act of 2024 The two-pot system aims to create and protect a sustainable retirement fund system whilst allowing flexibility as a relief mechanism for individuals in financial crises.
• retirement fund contributions are split into three components
• one-third allocated to a savings pot and two-thirds to a retirement pot
• pre-retirement withdrawals are limited to the savings portion without the employee having to exit employment
• retirement components remain protected
Future Proposed Amendments and Refunds | Payroll Monthly Reporting
The government and South African Revenue Service (SARS) intend to change payroll reporting from bi-annual to monthly.
This potential change underscores the importance of employers strengthening pre-payroll risk management practices to avoid inaccuracies in reporting to SARS. Preventing errors is less costly than fixing incorrect PAYE (Pay-As-You-Earn) or ETI submissions.
Constraserv helps clients understand complex legislative rules and implement them in company payroll systems.
Stay informed about our latest company news, updates, and achievements. Read more here:
- Integrated Payroll Systems in South African Businesses
- Contraserv’s Cloud based system makes Payroll a breeze
- Accuracy and efficiency
- Compliance and security
- Common Payroll practice and audit challenges
- Employee Trust
- Streamlined Payroll in South Africa
- Outsourcing your payroll : a stress free solution
- Reduce stress and workload
- Improved accuracy and compliance
- Cost savings
- Increase time to focus on your business