The Ministry of Finance (MoF) has extended the consultation period for proposed reforms to the Payment Deduction Management System (PDMS) until 28 February 2026 to allow more time for stakeholder input before final decisions are made.
“Further to our letter dated 25 August 2025 and the stakeholder engagements which occurred on 16 September 2025, the Ministry of Finance (the MoF) hereby gives notice that, subject to further consultations with the stakeholders, the period of stakeholder engagement regarding the proposed reforms to the Payment Deduction Management System (PDMS) is herewith extended to 28 February 2026,” the Ministry said on Friday.
The Ministry confirmed that deduction code holders may continue using the PDMS in the interim, provided all deductions comply with the relevant laws.
It emphasised that section 12 of the Labour Act, read together with Microlending Standard Number Four (ML.S.4), must be strictly adhered to.
“In the meantime, deduction code holders may continue making use of the PDMS, subject thereto that deductions must comply with the requirements imposed by law, including the Labour Act 2007, the State Finance Act, 1991 and ensuing Treasury Instructions and the Microlending Act, 2018,” the Ministry said.
The MoF also confirmed that its current arrangement with Avril Payroll Deduction Management Company (Pty) Ltd will remain in place until 30 November 2025, after which all PDMS operations will be managed internally by the Ministry.
The announcement follows a directive issued on 28 August informing employees and financial institutions that the government’s contract with Avril Payment Solutions, the operator of the system, will not be renewed. As a result, no new voluntary payroll deductions may be loaded onto the PDMS.
Existing loans already linked to the system will continue to be serviced internally by the Ministry until they are fully repaid, while insurance premiums, union fees, and other voluntary deductions must be shifted to alternative payment methods such as bank debit orders before the transition.
The Ministry clarified that statutory deductions, including PAYE, pension contributions, and Social Security payments, will remain unaffected.
