Official Interest Rate Change for Employer Loans

Due to high inflation and weak economic growth shaping global conditions, the South African Reserve Bank has announced an eighth consecutive increase in the repurchase (repo) rate. The repo rate has been increased by a further 25 basis points, effective from 27 January 2023. This takes the repo rate from 7% to 7.25%.

The official interest rate is set at 1% above the current repo rate, which will take the interest rate from 8%, to 8.25%, effective from 1 February 2023. This will impact the fringe benefits calculated on the Employer Loan item on SimplePay, which is tied to the presiding official interest rate.

SimplePay has already made the necessary changes to take the increase into account. In line with our ongoing commitment to making your payroll simple and compliant, all Employer Loan items on payslips from 1 February 2023 will automatically incorporate the new interest rate. Payslips dated before 1 February 2023 will remain unaffected by this change.

Our Employer Loan items help page can be viewed for any additional information.

Should you have any questions around this or your SimplePay profile, please feel free to contact us at support@simplepay.co.za.

If you are not yet a SimplePay customer, but want to experience simple and compliant payroll, we recommend signing up for a free trial. Experience payroll the simple way for 30 days!

Take care,

Team SimplePay