January 2025
Enhancements and New Product Features
Calculation Settings – Proration Settings
Previously, the proration settings on the Calculation Settings screen were managed through a series of checkboxes, with each combination leading to a different proration method.
These checkboxes have now been replaced with a selection list that clearly represents each proration method, making it easier for users to choose and differentiate between the available proration calculation methods in the system.
New Proration settings:
Note: This update does not affect existing calculations, which will continue to function as they did previously.
Custom Payslip – Show Year-to-Date Value Regardless of Current Value
We’ve introduced a new General Setting: “Show year-to-date value regardless of current value.” When enabled, this setting ensures that YTD values are displayed for all components on custom payslips, even if the components have no current payslip value for the period.
Activate Users – User type column
We have added a user type column to the Activate User screen under the Security section. Users can now determine the user type of the record before the user is made active.
Additionally, users can filter the user type column to display specific user types on the screen.
Did you know?
Question: How do I unblock a Pacey user?
Answer: A Pacey user can be unblocked on the Pacey Dashboard by clicking on the unblock option.
Navigate > Reports > Pacey Dashboard
For detailed instructions on how to unblock a Pacey user, please refer to the following link.
Question: How do I reactivate an inactive (blocked) user profile?
Answer: A blocked user profile can be reactivated by changing the status of the user’s profile from “Inactive” to “Active”.
Navigate > Config > Security > Security > User Profiles
Alternatively, inactive profiles can be reactivated on the Activate Users screen.
Navigate > Config > Security > Security > Activate Users
Question: Can new employees be added via the Bulk Actions screen?
Answer: To create multiple employee records, download, complete and upload the Add New Employee action type template on the Bulk Actions screen
Navigate > Bulk Actions
Reminder: Employment Equity Amendments Effective 1 January 2025
The amendments to the Employment Equity Act (EEA) will take effect from 1 January 2025. Employers are reminded to take the following actions to ensure compliance with the key amendments:
1. Review Employee Disability Status for EE Purposes
Update your records to ensure employees who qualify as disabled under the updated definition are correctly flagged for Employment Equity reporting. The revised definition now includes individuals with long-term or recurring intellectual or sensory impairments that substantially limit their prospects of employment or advancement, in interaction with various barriers.
2. Determine Designated Employer Status
From 2025, only employers with 50 or more employees will be considered “designated employers.” Businesses below this threshold will no longer need to comply with Chapter 3 of the EEA (affirmative action provisions).
If you are no longer a designated employer, contact the Department of Employment and Labour (DoEL) to determine if, how, and when to deregister. Currently, there is no formal clarity on this process.
3. Prepare for Sector-Specific Numerical Targets
Designated employers must ensure their Employment Equity plans align with the forthcoming sector-specific numerical targets to be set by the Minister of Employment and Labour. While draft regulations have been published, final targets are yet to be confirmed.
Importantly, we are still awaiting clarity from the DoEL regarding how employers should transition from their existing Employment Equity targets to the newly published targets once these are finalized. Employers are advised to stay informed of updates on this process to ensure a smooth transition.
Additionally, employers seeking government contracts must obtain a Certificate of Compliance, which will only be issued if they meet the sectoral targets (or provide reasonable grounds for non-compliance) and comply with reporting and minimum wage requirements.
Compliance Updates
Legislation updates for January 2025
Kenya
Effective 27 Dec Increase in Pension deduction, AHL relief replaced with AHL deduction, SHIF deduction initiated, Owner occupied deduction increased.
As of February 2025, the NSSF lower limit will increase from Ksh 7,000 to Ksh 8,000 and the upper limit will increase from 36,000 to Ksh 72,000
For the purposes of Section 12B of the Income Tax Act, the Market Interest Rate is 13% This rate shall be applicable for the months of January, February and March 2025.
Mauritius
The Mauritius Special Allowance Act was enacted on 20 December 2024 and came into effect on 21 December 2024 This new legislation introduces a Special Allowance (14th-month bonus) for employees earning a monthly basic salary of up to MUR 50,000 00
Gambia
The tax-free threshold for personal income tax has been increased from D24,000 per annum to D36,000 per annum.
Eswatini
According to Legal Notice No 5 of 2025, the contributions for the Eswatini National Provident Fund (ENPF) will be based on a higher maximum wage limit every year for five years, effective 01 January 2025.
Therefore, effective 01 January 2025:
• The monthly maximum wage level increases from E3 700.00 to E4 000.00.
• The maximum contribution for both the employee and employer will be E400.00 per month (E200.00 for the employee and E200.00 for the employer).
Zambia
Accordingly, the National Pension Scheme Authority advised that the maximum monthly employee contribution for the year 2025 has been revised to K1,708.20 from K1,490.80- a 14% increase. Given that the employee and employer both contribute 5%, the maximum total monthly contribution will increase to K3,416.40.
Tunisia
Economic Loss of Employment Insurance Fund: A fund to support workers laid off for economic reasons. Both employers and employees contribute a subscription fee of 0.5% of the wage bill, which will be reported to the National Social Security Fund
Revised Income Tax Schedule
Rwanda
According to Article 1, the rate of contribution under the mandatory pension scheme is fixed at the following percentage of the remuneration subject to contribution:
• from 1st January 2025: 12%;
Effective January 2025, contributions will be calculated on the total gross salary, which includes the basic salary, housing allowance, and transport allowances, aligning with the Rwanda Revenue Authority's (RRA) taxable base.
Are your Employee Benefits up to scratch?
In addition to providing payroll services across 44 countries in Africa, Axiomatic also:
✓ Consults to retirement funds in South Africa.
✓ Arranges and manages risk cover (life cover, disability cover, dreaded diseases cover, funeral cover etc.) for employees in South Africa.
✓ Advises and manages medial aid and medical insurance schemes in South Africa.
✓ Advises and manages pan-African medical insurance schemes and risk cover across countries in Africa.
✓ Manage an international medical insurance aimed at international employees and third country nationals in Africa.
Start a conversation with us by clicking here
Nigeria: An Update on our 2025 Salary Increase Forecast
In our August 2024 article (click here) we stated that when the CFO asked Sharon to provide Finance with the forecast Nigerian salary increase percentage for 2025, she broke out in a cold sweat.
Here’s an update on Sharon: She’s now bedridden. The main cause of her deteriorating health condition is that all economists expected inflation to decline from June. This has not happened, and in fact, inflation increased in October 2024.
The increase in inflation in October was the result of food inflation increasing by 39.2% because of the floods and was also exacerbated by the petrol price increases. Nigeria’s historic inflation rates and the revised Axiomatic forecast for the remainder of 2024 and 2025 are detailed in the table below:
THE CONDUCT OF FINANCIAL OF INSTITUTIONS BILL - 2025
To understand the Conduct of Financial Institutions Bill (known as COFI), we need to take a step back and look at the regulatory reform journey South Africa has been on for some time.
In 2018 the Twin Peaks regulatory model was formalised by the Financial Sector Regulation (FSR) Act, to strengthen financial sector regulation and oversight. The Twin Peaks regulatory reform was a direct response to the weakness of the financial services regulatory system revealed by the 2008 global financial crisis, such as inappropriate market conduct and the systemic risks of large insurers.
Payroll Integration Using API’s
In the past, payroll was seen as outdated, relying on old methods and manual processes. However, recent technological advances have transformed payroll into a strategic asset, offering valuable data insights.
Axiomatic specialises in integrating payroll systems with APIs, using middleware to ensure seamless data exchange. This integration boosts efficiency, enhances the Employee Value Proposition, and maintains data accuracy and security.
For tailored, efficient, and secure Payroll Integration Solutions.
With a custom user interface and strong audit controls, Axiomatic balances tradition with efficiency, offering tailored, secure Payroll Integration Solutions. This powerful payroll functionality, combined with key middleware, allows companies of all sizes to overcome data silos by creating robust Applications, Data, and API integration on-premise and in the Cloud, all from a single interface.
EMERGING MARKETS PAYROLL
Axiomatic is excited to announce that we have formed a payroll alliance that extends our coverage of 44 African countries, now includes an additional 37 emerging market countries.
Emerging Markets Payroll (EMP) is a payroll alliance of three specialist Regional Payroll Providers that collectively offer comprehensive payroll support for 80 countries in emerging markets across Africa, Asia Pacific, and Latin America.
Our alliance partners are:
Links International – the company was established in 1999 and provides services across the Asia Pacific region in 20 countries.
Payroll Worldwide – the company was established in 2007 and provides coverage in Latin America in 14 countries.
At EMP, our team of 320+ is committed to streamlining and simplifying your payroll processes in emerging markets using secure cloud-based technology. Further, EMP’s ability to integrate with leading HCMs including Workday, SuccessFactors, and Oracle HCM will ensure a seamless journey for your business.
Looking for a payroll provider who knows the ropes? Axiomatic EMP Services helps you save time and cut costs. Get in touch today for a free consultation. Elevate Your Role with EMP's Payroll
Contact Us for a Free Consultation!
ESS NOW ON WHATS APP
Hi, I’m Pacey, your employee self-service bot.
I can help you with payroll + HR requests
• Historical payslips: PDF / text format
• Apply for leave
• Approve inbox items
• View current leave balance
• View personal information
1 Easy & Secure Registration
1. Register using employee's national identification (ID) number. 2. Pacey will check that their mobile number and identification number matches their profile on PaySpace to verify them.
Interactive Messages 2
Pacey uses interactive messages which gives users a simpler and more consistent way to select the options available to them.
achieve significantly higher response rates compared to text-based lists
Pricing & Edition requirements
Pacey will be licensed as an additional service as explained below.
• Companies using Pacey must be on the Premier / Master Edition as this is a self-service feature.
• The license fee will be charged per active employee, which will provide each employee with a predefined number of conversations per calendar month.
• The pricing structure allows customers to choose from 5, 10, 20, or 30 conversations per employee, per calendar month.
• Employees will be limited to the number of conversations the company chooses. Every time an employee starts a new conversation with Pacey, they will be notified of how many conversations they have remaining for the calendar month.
• The Pacey contact number will be shared with customers upon purchasing this module including a QR code that makes it easy for an employee to scan and save the contact.
How can I help you today?
