Comparison of Pre 1 March 2016 and Post 1 March 2024 tax regimes
|
Old regime Pre March 2016 (max 20% employer, 7.5% member) |
New regime Post March 2024 (lesser of 27.5% and R350,000) |
Compared to old regime | |
| Deductible contributions |
R
|
R
|
R
|
| Taxable income |
R
|
R
|
R
|
| Tax payable |
R
|
R
|
R
|
| Net income |
R
|
R
|
R
|
| To achieve equality of take-home pay | Compared to old regime | |
| Total contribution rate |
%
|
%
|
| Total contribution amount |
R
|
R
|
| Deductible contributions |
R
|
R
|
| Taxable income |
R
|
R
|
| Tax payable |
R
|
R
|
| Net income |
R
|
R
|