Important Industry Updates
Return of Earnings
The Acting Director-General of Employment and Labour published Notice 2991 of 2025, announcing that the filing season for the 2024 Return of Earnings (ROE), also known as the 2A Form (W.As.8), will run from 1 April to 30 June 2025. You should submit your ROE in time to avoid a 10% penalty.
The ROE is a declaration, by employers, to the Compensation Fund of their employees’ earnings for the past year. The 2024 assessment period ran from 1 March 2024 to 28 February 2025. In this declaration, employers must also provide their employees’ projected earnings for the following year.
Please take note of Notice 3060 of 2025, which requires all employers to complete and submit the Confirmation of Employer Registration Details Form when filing their 2024 ROE. More details are available in the linked PDF, but beware of the risk of penalties and legal action for non-compliance.
There has been no change to the annual earnings threshold for ROE purposes. As mentioned last year, please note we apply the annual threshold to employees’ annual income.
At SimplePay, we always aim to make things as easy as possible and, as a result, you can download a report from our system that will help you complete your ROE, by simply going to Filing > OID (Workmen’s Comp) Return.
More information about the ROE and the Compensation Fund can be found on our help site here.
BCEA Earnings Threshold
The earnings threshold under the Basic Conditions of Employment Act (BCEA) has increased to R261,748.45 per year, effective from 1 April 2025. This change is important because employees who earn above this threshold are excluded from certain sections of the BCEA, such as those relating to ordinary hours of work, overtime pay, rest periods, and pay for working on public holidays. If any of your employees are earning below this new threshold, they are now entitled to these protections.
While SimplePay automates salary calculations in line with standard BCEA rules, these defaults can be overridden to accommodate alternative arrangements or industry-specific regulations. For more detailed information on affected payroll components, please refer to our help pages on Basic Pay Settings, Salary Calculations, and Leave Pay.
ETI Changes
The National Treasury has announced changes to the calculation of ETI, effective 1 April 2025, as provided below.
| Monthly Remuneration | ETI per month during the first 12 qualifying months | ETI per month during the second 12 qualifying months |
|---|---|---|
| R0 – R2,499.99 | 60% of monthly remuneration | 30% of monthly remuneration |
| R2,500 – R5,499.99 | R1,500 | R750 |
| R5,500 – R7,499.99 | R1,500 – [0.75 × (monthly remuneration – R5,500)] | R750 – [0.375 × (monthly remuneration – R5,500)] |
Our development team has already updated our system to account for these changes. As a result, any ETI calculations done after 1 April 2025 will automatically apply the new table. For more information on ETI, please refer to the extensive section on our help site.
Should you require any assistance, please reach out to 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. Get acquainted with our user-friendly software by reading our getting started page or taking our free online course.
Take care,
Team SimplePay