Basic Guide to Deductions

Banner of the National Department of Labour together with the South African flag

by Zopedol — last modified 2012-08-06 13:29

Employers may only deduct money from a worker’s pay if the worker agrees or if they are required to do so.

Application

The Basic Conditions of Employment Act applies to all employers and workers, but not -members of the -

National Defence Force,
National Intelligence Agency, or
South African Secret Service; or
unpaid volunteers working for charity.

The section of the Act that regulate working hours does not apply to:

workers in senior management
sales staff who travel and regulate their own working hours
workers who work less than 24 hours in a month
- workers who earn in excess of an amount stated in terms of section 6 (3) of the Act
- workers engaged in emergency work are excluded from certain provisions.

The provisions for deductions do not apply to -

workers who work less than 24 hours a month

Conditions for Deductions

Employers may not deduct money from a worker’s pay unless –

the worker agrees in writing to the deduction of a debt, or
the deduction is made in terms of a collective agreement, law (e.g. UIF contributions), court order or arbitration award.

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

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 34, of 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.

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