Finance Minister Enoch Godongwana was set to outline the government’s financial, economic, and social priorities for the coming year in the National Assembly on 19 February 2025. However, in an unprecedented move, the Budget Speech, along with key policy decisions tied to it, has been postponed for further consideration.

Typically, the Budget Speech lays out how government funds will be allocated, based on priorities highlighted in the President’s State of the Nation Address, which took place earlier this year. It also includes details on planned spending for the following tax year, and proposals for revenue collection that could necessitate changes to the applicable personal income tax rates, tax credits, and other fiscal decisions.

The Minister has reiterated that the budget must still comply with the Public Finance Management Act, which requires the budget to be tabled before the new financial year starts – or as soon as possible after the start of the financial year if circumstances require a delay. The revised budget is now expected to be presented on 12 March 2025, after further Cabinet discussions.

How Does This Impact You?

SimplePay has already reviewed the draft budget released last week, which includes expected updates to personal income tax brackets, rebates, and tax thresholds, along with changes to ETI brackets and calculations. Our development team is already working on the necessary system updates.

However, since the final budget hasn’t been approved by the government yet and may still change, we can’t roll out these updates just yet. Rest assured, our legal team is closely monitoring developments to keep you informed and compliant with minimal delay.

Stay tuned for updates via follow-up blog posts and in-system notifications over the next few weeks. Once the new budget has been finalised, we’ll automatically update your payroll to reflect all the requirements for the 2025/2026 tax year. If you’re still processing payroll for the 2024/2025 year, our system will continue using the current tax figures as usual.

If you have any questions or concerns, please feel free to contact our friendly Support team at [email protected].

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