Official Interest Rate Change for Employer Loans - September 2024

The South African Reserve Bank announced a reduction of 25 basis points in the repurchase (repo) rate, making this the first decrease since 2021. As a result, the rate decreased from 8.25% to 8% with effect from 20 September 2024.

As the official interest rate is set at 1% above the current repo rate, the interest rate will decrease from 9.25% to 9%, effective from 1 October 2024. This change will impact the fringe benefits calculated on any Employer Loan item on SimplePay, which is linked to the presiding official interest rate.

SimplePay has already made the necessary changes to take the decrease into account. In line with our ongoing commitment to making your payroll simple and compliant, all relevant Employer Loan items on payslips from 1 October 2024 will automatically incorporate the new interest rate. Payslips dated before this date will remain unaffected by this change.

If you need help setting up our Employer Loan item, you can visit our help page for guidance and additional information.

Should you have any questions, or require any assistance with your SimplePay account, please feel free to contact us at support@simplepay.cloud.

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Take care,

Team SimplePay