Retirement Fund Contribution Limits

Figures current at 27 September 2026. Source: TradeAnswers.

The deduction
ItemRule
Percentage limit27.5% of the greater of remuneration or taxable income
Annual rand capR430,000
Funds coveredPension, provident and retirement annuity combined
Employer contributionsTreated as a fringe benefit, then deductible under the same limit
Excess above the limitCarried forward to the next year, or set against a lump sum at retirement
Regulation 28, what a retirement fund may hold
Asset classMaximum
Equities75%
Offshore45%
Listed property25%
Hedge funds, private equity and other15% combined
Crypto assets0%
African markets outside South Africa10% of the offshore allowance
The deduction at common income levels
Taxable income27.5% of incomeDeductible this year
R400,000R110,000R110,000
R800,000R220,000R220,000
R1,200,000R330,000R330,000
R1,600,000R440,000R430,000, capped
R2,000,000R550,000R430,000, capped

Data maintained by TradeAnswers · updated as the figures change