Employer deductions

Employer deductions are deductions made by an employer for services that the employee must subscribe to as a condition of employment. This include

e) Pension,

f) Group life,

g) Medical aid.

NDRC Practice NoteLast reviewed 2026-04

What this means in practice

Compulsory employer deductions reduce gross income before the affordability test. Voluntary garnishee orders or employer-arranged credit deductions are listed as debt obligations so they can be brought into the rearrangement.

Where it goes wrong

Garnishee orders that pre-date the debt review can override PDA distribution if not addressed in the proposal. The fix is to apply for variation of the emoluments attachment order under Magistrates' Courts Act s 65J.

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 4.6: Employer deductions. Guideline 001/2015 (Debt Review Task Team Agreements 2010), p. 38.