When your payslip disappoints: What South African law says about salary deductions

Few feelings compare to the disappointment of opening your payslip at the end of the month and seeing a salary lower than expected. Whether it’s due to a loan repayment, equipment breakage or an unexplained admin fee, unauthorised deductions remain a major source of workplace conflict in South Africa.

But does your employer have the right to deduct money from your salary?

The answer is governed strictly by Section 34 of the Basic Conditions of Employment Act (BCEA). The general rule is straightforward: employers may not deduct any amount from an employee’s remuneration unless permitted by law.

Here’s how to distinguish between a lawful deduction and wage theft.

1. Automatic Deductions (Statutory and Legal)

Some deductions are legally mandated. Employers are required by law to deduct:

• PAYE (Tax): Income tax payable to the South African Revenue Service (SARS).

• UIF: Unemployment Insurance Fund contributions.

• Court Orders: If a court issues a garnishee order (e.g. for child maintenance or debt), the employer must comply. However, they may not charge an “admin fee” for processing the deduction unless expressly permitted in the court order.

2. Voluntary Deductions

For most other deductions—such as union subscriptions, medical aid, pension contributions or repayment of a personal loan—written consent from the employee is required.

• The Loan Trap: If you borrow money from your employer, a written agreement must specify the repayment terms. Employers may not unilaterally deduct the full amount, particularly if it would leave you without income.

• Withdrawing Consent: In most cases, yes—you may withdraw consent for voluntary deductions (such as social club fees) by giving written notice, unless doing so would breach a binding agreement, such as a fixed-term loan.

3. Deductions for Damages

This is one of the most contentious areas. If you crash a company car, lose a phone or break a tool, can your employer deduct the cost?

Yes, but only under strict conditions set out in Section 34(2). Employers must satisfy all four of the following criteria:

1. Fault: The loss must result from your negligence or deliberate act (i.e. not a genuine accident).

2. Fair Procedure: Employers must follow a fair process, including giving you an opportunity to respond. This amounts to a mini-disciplinary hearing.

3. Actual Loss: Employers may only claim for the current value of the loss—e.g. R2,000 for a depreciated laptop, not its original price.

4. 25% Cap: Any deduction for damages may not exceed 25% of your monthly cash remuneration. If the loss is greater, the employer must spread deductions across multiple pay periods.

4. Unlawful Fines

Employers may not deduct fines for misconduct—for example, R100 for arriving late or R500 for not wearing protective gear.

Such penalties are illegal. While disciplinary action (e.g. warnings or suspensions) is allowed, employers cannot arbitrarily deduct money as punishment. However, “no work, no pay” may apply for time missed.

5. Uniforms and Job Equipment

Can an employer charge you for your uniform or tools?

Generally, no. Employers are expected to provide the necessary uniforms and equipment. If there is a clear agreement requiring employees to pay, deductions may be allowed—but only if your salary remains above the National Minimum Wage after the deduction.

6. What to Do If Your Salary Is Short

If you notice an unauthorised deduction:

• Request a breakdown: Ask HR or your manager for an explanation and proof of your written consent.

• Review your contract: Check whether you agreed to the deduction when you signed your employment agreement.

• Lodge a grievance: If the deduction relates to damages and you weren’t given a fair hearing, file a formal grievance.

• Report to the authorities: If your employer refuses to correct the deduction, contact the Department of Employment and Labour, or refer the matter to the Commission for Conciliation, Mediation and Arbitration (CCMA).

** Aslam Moolla is the founder and director of Legal Leaders and co-founder of Legal Leaders Insurance. He is a passionate labour lawyer with over 14 years of experience. Moolla and the Legal Leaders have become a prominent voice for workplace fairness and a commitment to ensuring every South African knows their rights and how to defend them.

***The views expressed here do not necessarily represent those of Independent Media or IOL.

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