Official Interest Rate Change for Employer Loans – May 2026

The South African Reserve Bank announced a 25 basis point increase in the repurchase (repo) rate, from 6.75% to 7%, with effect from 29 May 2026.

As the official interest rate is set at 1% above the repo rate, it will increase from 7.75% to 8% on 1 June 2026. This adjustment affects the fringe benefits calculated on any Employer Loan item on SimplePay that is linked to the official interest rate.

Rest assured, SimplePay has already made the necessary updates to reflect this change. As part of our commitment to keeping your payroll simple and compliant, all relevant Employer Loan items on payslips from 1 June 2026 will automatically apply the new interest rate. Payslips issued before this date will not be affected.

If you have any questions or need assistance with your SimplePay account, please contact us at support@simplepay.cloud.

If you aren’t a SimplePay member yet, but want to experience compliant and simple payroll, take advantage of our free, 30-day trial by signing up here.

Take care,

Team SimplePay