The Minister of Employment and Labour published Government Gazette 50386 (Notice 2390 of 2024) on 27 March 2024, increasing the OID earnings threshold as follows:
- from R568 959 per annum (limit for 2023/2024),
- to R597 328 per annum effective 1 March 2024 (limit for 2024/2025).
The OID earnings threshold is the maximum amount of earnings per annum per employee on which an assessment of an employer is calculated in terms of section 83(8) of the Compensation of Occupational Injuries and Diseases Act (COIDA).
Click here to review Notice 2390 of 2024.
Impact of the South Africa OID Earnings Threshold Update 2024 on PaySpace
- The new limit has been implemented on the system effective March 2024.
- All open runs will be recalculated on Tuesday, 2 April 2024. If customers would not like the payroll to be recalculated, then the runs should be closed.
- Since the actual COIDA earnings are included in the ‘COIDA income’ component, until the annual limit is reached, employees earning below the previous annual limit of R568 959 in March, will not be impacted.
- If the current pay run is already closed, the new limit will be applied in the next open run retrospectively.
- Alternatively, create a March post-interim run and add a payslip to the employee record to apply the new limit retrospectively.
- To recalculate payslip records of employees that were terminated in March, users are advised to create a post-interim run and activate a payslip record for the employee.
- Please take note that if a post-interim run is created with the run description “COIDA Limit StatutoryUpdate” to update the COIDA income for terminated employees or recalculate payslip records of existing employees, then this post-interim run will not be billed with our PaySpace invoice.
- If a closed run in this year of assessment is opened and recalculated, then the new limit will be applied.
Should you have any questions regarding the South Africa OID Earnings Threshold Update 2024, please feel free to visit our Support page for more ways to get in touch, or email us at [email protected]
The PaySpace Team