Basic Guide to Deductions (Wholesale and Retail)

by admin — last modified 2014-02-18 13:08
Only certain deductions can be made from a workers pay.


Sectoral Determination 9 applies to all employers and workers in the wholesale and retail sector, including those associated with-
  • merchandising,
  • warehousing, or
  • distribution operations.
The determination does not apply to workers who are covered by-
  • another sectoral determination, or
  • a bargaining council agreement.

The Basic Conditions of Employment Act applies in respect of any matter not covered by this sectoral determination.

Conditions for Deductions

Employers may not make any deductions for debts or repayments on a workers pay, unless it is collectively agreed to in writing.
Employers, who make payments to a third party on behalf of the worker, must pay in accordance with the requirements of that payment agreement.
Employers may deduct for loss and damages if -
  • it occurred during working hours and the worker was at fault
  • a fair procedure has been followed allowing the worker to show why a deduction should not be made.
  • the total amount of the debt does not exceed the actual amount of the loss
  • the amount does not exceed ¼ of the workers pay.

Deductions for Damage or Loss

Deductions for damage or loss caused by the worker may only be made if –
  • the employer has followed a fair procedure and given the worker a chance to show why the deduction should not be made,
  • the worker agrees in writing, and
  • the total deduction is not more than 25% of the worker’s net pay.

Based on Legislation in Section 34of the Basic Conditions of Employment Act

Deductions for Benefit Funds

Employers must pay deductions and employer contributions to benefit funds (pension, provident, retirement, medical aid, etc.) to the fund within 7 days.​