Are pension fund contributions tax deductible in South Africa?

Yes, pension fund contributions are tax deductible in South Africa. However certain annual limits apply. You may deduct up to 27.5% of your taxable income, subject to an annual limit of R350’000 for the 2024/25 tax year.


  • If you earn R300 000 a year, a maximum of 27.5% x R300 000, or R82 500, can be used as tax deduction
  • If you earn R1 500 000 a year, the maximum you can claim as tax deduction is R350 000.
Max Tax Deduction Calculator

How much less tax will I pay if I contribute towards a pension fund?

The following table shows how much tax you will save depending on your pension fund contributions:

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