The Director General of Employment and Labour published a Government Notice (notice 1617 of 2023, published 17 February 2023), increasing the OID earnings threshold from R529 264 per annum to R563 520 per annum effective 1 March 2023 (2023/2024 year of assessment).
Please refer to the Government Gazette linked above to check the new OID limit.
Take note: The new threshold is only applicable as from the 2023/2024 tax year, and the limit should not be updated in your 2022/2023 payroll.
Frequently Asked Questions:
Q: How do I change the OID limit/earnings threshold in my company?
A: The new limit must be updated manually in your payroll as from March 2023. The limit should not be changed while your company is still in the 2022/2023 tax year.
The following articles will provide guidance on this change:
- How to update the annual OID limit / earnings threshold in your payroll company
- OID annual limits / earnings threshold for the current and previous years