Tax proposal could make medical aid an unaffordable ‘luxury’
IN THE wake of the National Health Insurance (NHI) presentation that took place on 31 October 2023, a significant proposal has been put forward: the elimination of existing medical aid credits for employees enrolled in registered medical aid plans.
How does this impact employees’ cashflow?
For employees who belong to a registered medical aid according to the medical schemes act, the medical credits actually reduce an employee’s monthly PAYE amount which are currently implemented on most payrolls thereby increasing an employee’s net take home pay.
Following the Budget Speech held in February 2023, it was declared that the following monthly medical aid credits are applicable for the 2024 year of assessment…
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