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Update on Gratuity Payments

By Republic of South Africa: Department of Government Communication and Information

This update is being provided due to the many enquiries being received by the Department of Cooperative Governance (DCoG) from former councillors that are eligible for receiving the once-off gratuity payment.

As at 2 December 2016, 4910 applications out of a possible 4942 were received by the Department. We wish to thank all stakeholders for facilitating the submission of the completed documentation to the Department, and requests that any outstanding applications be urgently submitted.

The process of paying gratuity to those who submitted their forms and are eligible has commenced. The payments are based on the pensionable salary of each councillor. It is important to note that those eligible would be councillors that served a minimum of 24 consecutive months and whose term come to an end from 1 April 2016 and onwards.

It is important to note that the payment process is a complex one and as very slow, and is subjected to the following:

  • Verification of applications that were received by the Department;
  • Calculation of the gross gratuity payment, based on the formula that was recommended by the Commission;
  • The obtaining of individual tax directives from the South African Revenue Service;
  • The deduction of the individual tax obligation for a recipient from the gross gratuity payment; and
  • Payment of the net gratuity into the nominated bank account of the former councillor.

In the event where an eligible councillor has passed on, such gratuity must be paid to the beneficiaries or estate of such a councillor.

Based on the process outlined above, it is anticipated that the payment process will be finalised during the first quarter of 2017.

It is important to note that every effort is being made to process and finalise the payments as soon as possible. All applicants are therefore requested to be patient and allow the Department sufficient time to follow due process so as not to compromise compliance requirements in this regard.