Insights
Which payroll deductions are lawful?
Employers may only deduct what the law requires, a court orders, or the employee has agreed to in writing. Everything else is an unlawful deduction, however reasonable it feels.
Lawful categories
- Statutory: PAYE and the employee UIF contribution
- Court or bargaining council-ordered: garnishees, emoluments attachment orders, council levies
- Written consent or contractual: retirement funding, medical scheme, union fees, staff loans
Loss and damage
Deducting for loss or damage is only permitted where the BCEA's requirements are met, including a fair procedure in which the employee can respond, written agreement, and limits on the amount recovered in any period.
Overpayments
An overpayment can generally be recovered, but recovering it in one cycle is a frequent source of disputes. Agree a schedule in writing and show it clearly on the payslip — see statutory deductions.
Frequently asked questions
Can an employer deduct for till shortages or breakages?
Only where the strict BCEA conditions are met: a fair procedure, the employee's written agreement, and adherence to the limits on the amount that may be deducted.
Can an employer deduct SDL from an employee?
No. SDL and the employer UIF contribution are employer costs and may never be recovered from employees.
Must deductions appear on the payslip?
Yes. The BCEA requires payslips to itemise remuneration, each deduction and the net amount paid.
Patuza reviews consents, limits and codes so your payslips are defensible.
Book a consultationRelated services
- Payroll processing →
Monthly and weekly payroll processing, calculations, payslips and statutory deductions.
- Third-party payments →
Garnishees, medical aid, retirement funds, unions and councils paid from accurate schedules.
- Payroll audits →
Independent payroll audits covering data integrity, statutory accuracy, controls and risk.
Related topics
- Statutory deductions →
The full deduction hierarchy: what employers may deduct, in what order and within what limits.
- Net pay →
How take-home pay is derived from gross remuneration, deductions and tax.
- UIF →
Unemployment Insurance Fund contributions, declarations and employer obligations.
Related insights
- BCEA payslip template →
Compliant payslip layout you can download.
- What payroll processing involves →
A cycle-by-cycle walkthrough of how a South African payroll actually runs.