Some of the Premiership’s premier earners are reportedly feeling the pinch due to hikes in income tax, with tax rates now clawing up to 45% of a player’s salary.
In the previous year’s budget speech, Pravin Gordhan, then Minister of Finance, announced steeper tax brackets targeting individuals earning well above the average South African.
The 2018 budget, presented by new Minister Malusi Gigaba, continued strict fiscal policies. As reported by the Sowetan, “Taxpayers earning above R1.5 million are liable to pay up to 45%, while those above R708,310 contribute at a rate of 41%.”
“This equates to monthly salaries of roughly R125,000 and R59,000 respectively,” the Sowetan added.
The Sunday Times highlighted that Mamelodi Sundowns star, Khama Billiat, has requested his new contract to account for these tax adjustments. Despite earning R160,000 monthly, his net income was reportedly down to R90,000 due to tax deductions.
A source believed to be a PSL player shared insights, stating, “Yeah, 45% is quite substantial. Footballers are taxed based on the contract duration, with no job security post-contract. Compared to a regular worker with a 20-year career, footballers generally have shorter careers, often three seasons with a club. With careers rarely surpassing ten years, such high taxation is harsh. We have families and rising expenses, so we’re hopeful for change.”
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