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YEAR-END BONUSES IN SOUTH AFRICA: WHAT’S REAL, WHAT’S RUMOUR, AND WHAT’S LEGAL

As November rolls in, so do the bonus whispers. Group chats light up, old payslips resurface, and expectations start to climb. But before anyone mentally spends money that hasn’t landed, let’s get clear on what the law actually says.


What Determines a Bonus?

There’s no automatic right to a bonus or 13th cheque. Legally, it depends on:

  • Your employment contract: If it promises a bonus or 13th cheque, that’s binding.

  • Company policy or bargaining council rules: These are enforceable if they set bonus terms.

  • Consistent past practice: If bonuses are paid year after year without performance conditions, employees may have a “reasonable expectation.”

If none of these apply, bonuses are goodwill gestures—not guaranteed income.


Bonus vs 13th Cheque: Know the Difference

  • A 13th cheque is part of your salary structure. If it’s in your contract, it’s owed—no surprises.

  • A bonus is usually performance-based and discretionary. But “discretionary” doesn’t mean random.

Employers must apply discretion fairly, rationally, and consistently. Bias, favouritism, or vague criteria won’t hold up under scrutiny.


Legal Boundaries

  • Discretion must be backed by performance data or financial results.

  • Bonuses must be free from discrimination, gender, pregnancy, union membership, etc.

  • If bonuses are withheld, employers must show valid commercial reasons and apply the same logic across the board.


Tax Reality

Bonuses and 13th cheques are fully taxable. December payslips often look brutal because SARS uses an annualised formula. It’s not payroll being clever, it’s just how the system works.


Smart Bonus Strategy for Employers

Before you hit “send” on that bonus email:

  • Check if your contracts and policies say what you think they say.

  • Review past practice—have you created expectations unintentionally?

  • Make sure decisions are fair, data-backed, and legally defensible.

  • Keep a clean paper trail in case you’re ever challenged.


Bottom line: Bonuses are powerful tools—but only when handled with clarity, fairness, and legal sanity.

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