Third-Party Deductions

THIRD-PARTY DEDUCTIONS

Understanding Third-Party Deductions

Third-party deductions are financial commitments made on behalf of employees to external entities. They include loan repayments, insurance premiums, medical aid contributions, and other authorised obligations deducted from payroll.

While these deductions can provide important benefits, they also present risks if not properly managed.

PayShield brings oversight, authorisation, and validation to this process — ensuring fairness, compliance, and accountability.

Types of Deductions

Loans

Regulated repayments to financial institutions and micro-lenders with employee consent.

Policies

Medical aid, pension, insurance, and funeral cover contributions.

Special Deductions

Garnishee orders, union fees, or municipal arrears that require legal backing or employee authorisation.

Why PayShield Matters

Without oversight, deduction systems become vulnerable to duplication, overcharging, or unauthorised entries.

PayShield eliminates this risk through a centralised, transparent model that verifies every provider, prioritises essential payments, and ensures total compliance with South African labour and financial law.