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    Two-pot retirement system

    From 1 September 2024, one-third of new retirement contributions go to a Savings Pot; two-thirds to a Retirement Pot.

    Full definition

    The Two-Pot Retirement System, effective 1 September 2024, splits new retirement fund contributions into a Savings Pot (one-third, accessible once per tax year for emergency withdrawals) and a Retirement Pot (two-thirds, preserved until retirement). Balances accumulated before September 2024 sit in a Vested Pot under the old rules.

    In-depth guides

    Two-pot retirement system — payroll guide

    See also

    Pension fund
    A retirement savings vehicle where contributions are tax-deductible (up to 27.5% of income, capped at R350,000/year).
    Provident fund
    A retirement fund similar to a pension fund, harmonised with pension fund rules since 1 March 2021.

    Automate Two-pot retirement system in your payroll

    Payroll Africa handles Two-pot retirement system calculations automatically for South African employers — SARS-aligned for 2026/27. From R90/month.

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    Let payroll handle Two-pot retirement system for you

    Payroll Africa calculates it automatically every month for South African employers — SARS-aligned, with payslips, EMP201 and IRP5 included.

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