South Africa | How is the COIDA Income note component calculated?

This feature is available on all Deel Local Payroll powered by payspace payroll editions

The COIDA calculation prior to 1 July 2023

Use the lower of:

1. YTD actual COIDA Income and,
2. COIDA limit / 12 X periods worked (no pro rata).

And minus

1. Previous YTD COIDA Income used (i.e. per the W.As.8).
   

For monthly companies, a 12 should be used, for bi-weekly companies 26 or 27, and for weekly companies 52 or 53.

The COIDA calculation effective from 1 July 2023

This is the employee’s cash remuneration paid as defined in paragraph 1 of the Fourth Schedule and includes the following MTD tax codes:

1. Apply the COIDA limit to the YTD actual COIDA Income including the current actual COIDA Income.
2. If within the ceiling: Take the YTD actual COIDA Income, including the current actual COIDA Income and minus the YTD tax code, "COIDAI".
3. If not within the ceiling: Take the COIDA limit and minus YTD tax code, "COIDAI".
   

Note: "YTD" stands for Year-To-Date and "MTD" stands for Month-To-Date.

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