Monetary Policy Committee Increases Official Interest Rate

For the third time in 2022, the Monetary Policy Committee (MPC) has made the decision to further increase the repo rate with effect from 25 March 2022.

It was recently announced that the repo rate will increase by a further 25 basis points, from 4.0% to 4.25%.

SimplePay uses the SARS official interest rate to calculate the fringe benefit on employer loans, which is always set at 1% above the current repo rate. This current increase will therefore also cause the official interest rate to increase from 5.0% to 5.25% with effect from 1 April 2022. 

We have already updated the system to accommodate the increase, so no action is required from you.  All employer loan items on payslips dated from 1 April 2022 will automatically incorporate the new interest rate. Payslips dated before 1 April 2022 will be unaffected.

You can find more information on employer loans on our help page here.

If you have any queries regarding SimplePay or any of our services, please feel free to contact us on support@simplepay.co.za. 

Not yet a SimplePay client but want to experience seamless payroll no matter what changes in legislation or policy occur? The good news is that we offer a 30-day free trial and sign up is a breeze! You can find out more and sign up for a trial here. 

Team SimplePay