Update: Delayed Budget Speech – Impact on Your Payroll

We’d like to update you on how the delayed Budget Speech may impact your payroll. While the Budget Speech is now scheduled for 12 March 2025, any proposed changes will still apply retroactively from 1 March 2025.

This update outlines what to expect for your March 2025 payslips, including guidance on what to do if payslips have already been finalised.

How Does This Impact You?

Tax

If you finalise a payslip before the Budget Speech, no action is required. SimplePay’s tax averaging method ensures that any tax underpayment is automatically corrected on the next draft payslip.

ETI (Employment Tax Incentive)

The Budget Speech will take place before your first EMP201 submission for the new tax year. To ensure compliance, we recommend waiting until after the Budget Speech before finalising your EMP201 submission.

Subsistence and Travel Allowances

Payslips that include subsistence and travel allowances and that were finalised before the changes took effect will reflect the old allowance amounts. Since payslips must match tax certificates and EMP submissions to SARS, these amounts cannot be adjusted retroactively and will need to be accounted for during your SARS assessment.

✅ Payslips that have not been finalised before the changes take effect will automatically be updated.

How Does This Impact Your Employees?

If a payslip was finalised before the changes were applied, employees will notice a tax adjustment on their next payslip. This means:

• Tax deductions may increase or decrease based on the new tax tables.
• As a result, employees will see a change in their Nett Pay.

We recommend informing employees in advance that these adjustments result from the delayed Budget Speech. Our tax averaging method ensures that their PAYE remains correct over the full tax year.

📌 For more details, employees can refer to our help site on tax calculations here.

What Are We Doing?

• We’re ready to implement the changes as soon as they’re confirmed.
• We’ll provide updates via blog posts and system notifications to ensure you’re always informed.

Next Steps

• Monitor our updates – we’ll notify you once the final changes are confirmed.
• Delay your EMP201 submission until after the Budget Speech to ensure compliance.
• Inform your employees about possible tax adjustments on their payslips.

Proposed Changes to Tax, Allowances, and ETI (Effective 1 March 2025, Subject to Confirmation)

NOTE: Please refer to our latest blog post for announced budget speech changes.

ETI Changes

Old ETI amounts (2024/2025 and prior)

New ETI amounts (2025/2026)

Subsistence and Travel Allowances

Subsistence Allowance

Travel Allowance

If you have any questions or concerns, please feel free to contact our friendly Support team at support@simplepay.cloud.

Want to know more about SimplePay? Check out our website or try our payroll software for free with a 30-day trial.

Take care,

Team SimplePay