Benefits
Fringe benefit
Any non-cash benefit provided to an employee — taxed under the Seventh Schedule of the Income Tax Act.
Full definition
A fringe benefit is a taxable benefit that an employer provides to an employee at no cost or a reduced cost (company car, employer-paid medical aid, low-interest loan, accommodation, right of use of assets). The Seventh Schedule to the Income Tax Act sets the cash-equivalent value that must be added to the employee's taxable income.
See also
Travel allowance
A cash allowance for business travel — 80% is subject to PAYE (20% if 80%+ of travel is business).
Company car (use of vehicle)
A fringe benefit taxed at 3.5% of the determined value per month (3.25% if a maintenance plan is included).
Medical aid tax credit
A monthly PAYE reduction (Section 6A) of R376 for the main member + R376 first dependant + R254 each additional dependant (2026/27).
Automate Fringe benefit in your payroll
Payroll Africa handles Fringe benefit calculations automatically for South African employers — SARS-aligned for 2026/27. From R90/month.
Browse the full South African payroll glossary — 55 terms explained.