South Africa | How Is The COIDA Income Note Component Calculated?

South Africa | How Is The COIDA Income Note Component Calculated?

The COIDA Income New note component and COIDA company contribution have been changed to a Year To Date Averaging calculation.

Calculation: 
Take the Year To Date COIDA Income and compare this value to the COIDA limit / 12 *** X company periods worked.
If the employee was terminated or started midmonth, round up the period worked to 1 as previously done for the weekly employees.
Then take the lower between the two amounts calculated and minus the previous Year To Date COIDA Income used.

*** Please note that for monthly companies, a 12 should be used, for bi-weekly companies 26 or 27, and for weekly companies 52 or 53.
​
This calculation is applicable from March 2022 onwards.

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