Deductions for irregular income
Deductions for irregular income
a) Overtime must be deducted unless it is a regular feature on the pay slip, in which case 75% of the average of the previous 3 consecutive months must be calculated, but never exceeding 75% of gross income4.
b) Commission earners can provide an IRP5 or the Debt Counsellor may work on the average earnings over the previous six consecutive months’ pay slips or bank statements. Where commission is subject to seasonality, it should be calculated over a 12 month period e.g. life insurance is sold around tax dates, cars are sold around year-end bonus time; fertilizer/seek is sold around agricultural seasons etc.
c) Any other allowance must be deducted unless it is of a regular nature, in which case the lowest of three months must be used.
d) Consideration must be taken of the present economic conditions that affect the consumer and his/her employer. _____________________ 4 Average overtime is calculated by adding the amount for each month together and then dividing it by the number of months added. E.g. 3 months overtime divided by 3 x 75% = average overtime to be added to gross income.
NDRC Practice NoteLast reviewed 2026-04
Irregular income (commission, overtime, shift allowances) is averaged over the most recent three to six months. A single high month is not a baseline.
Aligns with NCA Regulation 23A on the affordability assessment, which requires three months of evidence for variable income.
Drawn from NDRC's active case work. For your situation, see our debt counselling overview.
Cite this clause
National Credit Regulator. (2015). Annexure B — Debt Review Assessment Guidelines, clause 4.4: Deductions for irregular income. Guideline 001/2015 (Debt Review Task Team Agreements 2010), p. 37.