Official Interest Rate Change for Employer Loans – September 2026

The South African Reserve Bank announced a 25 basis point increase in the repurchase (repo) rate, from 7% to 7.25%, which came into effect on 25 September 2026.

As the official interest rate is set at 1% above the repo rate, it will increase from 8% to 8.25% on 1 October 2026. This adjustment affects the fringe benefits calculated on any Employer Loan item on SimplePay that has the Calculate Interest Benefit box ticked.

Rest assured, SimplePay has already made the necessary updates to reflect this change. As part of our commitment to keeping your payroll simple and compliant, all relevant Employer Loan items on payslips dated from 1 October 2026 will automatically apply the new interest rate. Earlier payslips will not be affected.

If you have any questions or need assistance with your SimplePay account, please contact us at [email protected].

If you aren’t a SimplePay member yet, but want to experience compliant and simple payroll, take advantage of our free, 30-day trial by signing up here.

Take care,

Team SimplePay