Tag: payroll deductions

Do your employees fully understand the processes behind payroll? Payroll, for many people, remains a mystery. The processes and calculations that sit behind the monthly amount that lands in the bank account are vague and complicated. Many employees find navigating the maze of benefits, healthcare and pension payments to be overwhelming and often don’t really understand why they’ve been paid more or less each month.

The South African Reserve Bank and National Treasury have become aware of an increase in payroll deductions in recent years. Stakeholders were engaged to create a regulatory framework to govern payroll deductions and the resulting proposal has led to three very limited options on how companies can govern employees’ payroll deductions.

After becoming aware of an increase in payroll deductions in the past years, the South African Reserve Bank (SARB) and National Treasury have engaged in discussions with stakeholders on the creation of a regulatory framework to govern payroll deductions. The proposal was open for public comment until 30 April 2018.