Deductions are only taken from an employee’s wage according to the legal maximum amount or no more than 25% of their stipulated wage for that period

What does this mean?

  • This is written into the BCEA to protect employees from incurring excessive debt.
  • As a business you should be careful about what you loan to your employees and the expectations you have around repayment of a loan for example.
  • It is better to teach your employees how to manage their finances, rather than allowing them to incur debt.