Axiomatic Newsletter January 2026

January 202 6

Product Podcast – December

Catch the December newsletter in an easy, on-the-go podcast format.

Podcast Series

Screen Conversion – Training Courses

The Training Courses screen has been converted to NextGen

Some of the changes/enhancements introduced as part of this conversion include:

Enhanced Training Course details overview – We’ve implemented a standardised grid layout with additional columns such as Course Type, Institution, Cost and Expiry Date to provide for additional course details at a glance.

Search & Filter Capabilities – Easily search & filter to enjoy faster, more efficient training record location and management

Training Courses Form – Training course information is managed in a form that is sorted into sections with an Additional Details section to capture advanced information such as NQF Level, Program Category, Credits and Equity Training (EEA2) indicators.

Training Course status badge – Each Training Course will have a Training Course status badge next to it.

Draft – Indicates that the training course has not been scheduled. Active – Indicates that the training course has been scheduled.

Training Course Schedule – Each training course includes a Schedule button that opens a dedicated Training Course Schedule page to enter course schedule information

Please note that the Attendance Register Format field and the related Attendance Register Report have been removed from this screen

Training Delegates – To add delegates that are required to attend training, select the delegate icon shown to the right of the Training Course Schedule record.

The Training Delegates screen is split into two tabs, namely: Internal and External.

Internal Tab: Allows users to add or select multiple delegates from an Org structure hierarchical grid linked to configured Org Units on their Position screen. Note: Employees who have not been linked to a Position are excluded from this internal delegates list.

External: Allows users to manually add external delegates by selecting the add icon. This tab only consists of two fields: delegate name and delegate email

Screen Conversion – Rater Setup

The Employee Evaluation Defaults screen has been converted to NextGen and renamed Rater Setup.

Some key changes/enhancements from this screen conversion include:

Simple Navigation – The previous two-tab layout (Template & Raters, Employee KPA’s) has been simplified.The Employee KPA’s tab has been removed from Employee Evaluations and can now be found on the Employee KPI’s screen.

Improved Process Type Visibility -The screen now displays all evaluation process types linked to an employee, with the most recent process shown first. Users can drag and drop to reorder items as needed.

Rater Count Badges – Each process type now includes a badge showing the number of raters linked to that Process Type and Default Template combination.

Adding Process Types – A new ‘+ Process Type’ dropdown makes it easy to add additional process types for an employee.

Visual Weighting Bar – We’ve introduced a percentage bar that visually displays the percentage of total rater weighting percentage allocated. As raters are added and weightings assigned, the bar automatically updates toward the required 100% total. This bar will be hidden if all raters linked to a Process don’t have ‘Include Score’ ticked.

Rater Type field – For each Process Type and Default Template combination, only one rater can be assigned for Direct Report, Manager or Self. Selecting Self will automatically assign the employee as their own rater without manually searching.

Inherit Rater from Position – When the Rater Type Manager or Direct Report is selected and this field is ticked, the system will automatically assign the direct reports from the employee’s position without having to search for a rater in the Rater Name field.

If the Inherit Rater from Position field is not ticked for both of these Rater types, it allows users the flexibility to indicate the rater for the employee who is responsible for the downward review feedback in cases where the rater isn’t the same as the person linked on the employee’s Position screen.

Power BI – The Rater Setup screen has been added to Power BI & Connector templates.

Custom Fields – Leave Scheme Parameters

We’re introducing the ability to add custom fields to the Leave Scheme Parameters screen.

When a Custom Field is configured for the Leave Scheme Parameters screen, it will be displayed under a new “Additional Fields” tab within the leave bucket slide-out config menu.

Coming Soon

Bulk Actions – Employee KPI’s

We’re working on a new Bulk Action for the swift upload of employee KPI details for specific Process Types, Evaluation Processes and Default Template combinations. This bulk action is especially valuable for customers who have previously managed KPI contracting elements manually and now need to bulk upload these into their employees’ Performance Management KPI screens. The KPI’s bulk upload will soon be available under Bulk Actions > Employee > Performance Management.

The employee KPI’s template will include the following fields:

Feature Spotlight

Preventing Payroll Processing for Terminated Employees

To support varying company policy compliance and reduce risk, our payroll system offers two powerful calculation settings designed to prevent payroll processing on terminated employee records. These settings can be found under the Payroll > Payroll Config > Calculation Settings screen

Do not calculate any figures for employees 2 or more months after their termination date.

This setting is designed to prevent payroll processing for an employee starting from the second month following their termination date. It’s perfectly suited for organisations that permit limited post-termination payments such as adjustments or one-time payouts but require a definitive cut-off to prevent salary processing long after the employee has departed.

Do not calculate any figures for employees in periods after their termination date

This more restrictive setting is perfect for companies with strict policies that mandate all final payouts be finalised in the same month as the termination. It completely prevents payroll processing for any periods immediately following the termination date.

Message from Product – Warm festive wishes as we wrap up 2025

As 2025 draws to a close, we want to express our gratitude for the incredible journey we’ve shared. Your continued support, valuable feedback and insights have been instrumental in all our achievements this year. We wish you peace, joy and a well-deserved rest with your loved ones. Wishing you a wonderful festive season and another exciting year together in 2026!

Reminder: We will not send a product update in January 2026, instead we will return with our next update in February 2026.

System Security: Cloudflare & Session Timeout

We received feedback on user experiences relating to the Cloudflare security layer and the system session timeout. As part of providing a world-class payroll system, ensuring a secure payroll system remains our top priority and our security measures adhere to standard industry practices. Collectively, these security measures reduce the attack surface, maintain regulatory compliance and ensure the responsible handling of your sensitive payroll data

Cloudflare

Effective May 1st, we implemented a new CAPTCHA verification toolset. This change was specifically designed to ensure enhanced protection against cyber-attacks and abuse by more effectively distinguishing between legitimate users and automated traffic.

What is Cloudflare and why do we need it?

Cloudflare acts as a critical security guard and traffic controller for our system. It is the first line of defence, stepping in to protect against security attacks by blocking malicious traffic such as bots, credential-stuffing attempts and DDoS attacks before they reach the login system. This filtering process acts as a protective layer between the user and the server and may challenge users with a CAPTCHA or similar checks when unusual activity is detected.

System session timeout

We acknowledge feedback concerning the system timeout. This security measure is in place to protect the confidentiality and integrity of highly sensitive personal, financial and tax-related payroll data.

Why the 20-Minute Timeout?

The system enforces session timeout controls based on industry best practices and applicable security standards. A session timeout of 20 minutes of user inactivity is implemented to minimise the risk of unauthorised access resulting from unattended terminals, shared workstations or hijacked sessions. This strict access control is essential when processing sensitive information.

The timeout also aligns with recognised security frameworks, including ISO 27001/27002, SOC 2 and GDPR data protection principles, all of which require the automatic termination of idle sessions. This reduces exposure to threats like credential theft, session hijacking and unauthorised use.

NextGen Screens: A warning prompt is displayed prior to timeout to prevent unintentional work loss while ensuring inactive sessions are closed promptly. The timeout prompt for NextGen screens should only appear after 20 minutes of user inactivity. If you are actively using a NextGen screen and encounter a timeout, please report the specific screen details to our Support desk for investigation.

Classic Screens: Please be aware that the ability to detect user activity to prevent a timeout is not available on older Classic screens. Consequently, users on these screens might encounter timeouts even while actively working. In this case, simply click on “Stay Logged In” button to continue working

For more on E-Onboarding or for a demo, visit our website and related KB articles.

Madagascar

The Finance Law 2026 introduces an amendment to Madagascar's Impôt sur les Revenus Salariaux et Assimilés (IRSA). A new higher marginal tax rate has been added for high-income earners, effective 1 January 2026, impacting monthly payroll tax calculations.

Angola

This legislation includes amendments to the Employment Income Tax Code (Imposto sobre o Rendimento do Trabalho – IRT), specifically through Article 21 (Artigo 21) of the law, which revises the rules applicable to employment income (Rendimentos do Trabalho – Grupo A).

Under Article 21, the monthly income tax exemption threshold for employees has been increased from Kz 100,000 to Kz 150,000.

DRC

An interministerial order published in the Journal Officiel on 7 January 2026 amends the employer contribution rates payable to the Institut National de Préparation Professionnelle (INPP). The INPP is the DRC’s primary government institution for workforce development. The measure increases statutory payroll costs for both private and public employers. The revised rates apply from 1 January 2026.

Nigeria

On June 26, 2025, President Bola Ahmed Tinubu signed into law four major tax reform bills aimed at overhauling Nigeria’s tax system. These are:

• Nigeria Tax Act

• Nigeria Tax Administration Act

• Nigeria Revenue Service Act

• Joint Revenue Board Act

The wide sweeping reforms aim to simplify tax administration, improve compliance, and enhance revenue generation. To keep our Clients informed and aware of the proposed changes, we have analysed the Acts and extracted what we consider to be pertinent changes from a payroll perspective.

Gabon

Decree No. 487 of 18 December 2025, published in Official Journal No. 96 Bis on December 2025, introduces amendments to the contribution rates of the Caisse Nationale de Sécurité Sociale (CNSS). The revised rates apply from 1 January 2026 and affect statutory social security contributions.

Malawi

The Honourable Minister of Finance, Economic Planning and Decentralization presented the 2025/26 Mid-Year Budget Review to Parliament on 21st November 2025. New tax measures for Domestic Taxes and Customs & Excise were announced. The new measures affecting payroll are effective from 30th December, 2025

Cameroon

There are no direct amendments to employment tax rates. However, the Law has enacted new Personal Income Tax (PIT) incentives and measures that impact employer taxes effective 1 January 2026. Youth employment tax credit Support measures for people with disabilities

Zambia

The monthly NAPSA ceiling increased to ZMW 37 236 and the maximum monthly contribution increased to ZMW 1 861,80 for both the employee and the employer.

Ghana

The Social Security and National Insurance Trust (SSNIT), in consultation with the National Pensions Regulatory Authority (NPRA), has increased the maximum insurable earnings for 2026 from GHS 61 000.00 to GHS 69 000.00. The minimum insurable earnings level for 2026 is set at GHS 587.79, up from 490.05.

Egypt

Social security minimum and maximum salary limit increases

Earned Wage Access (EWA)

EWA is a technology that integrates with the payroll system enabling employees to access a portion of their already earned salary at any point during the pay cycle.

Growing popularity in the US, UK, Singapore, and Indonesia.

What’s in it for the employer?

NO Cost NO MORE Advances Adds to EVP at NO COST Assists staff retention

of surveyed workers would be willing to work longer for an employer offering EWA.

of surveyed workers are more willing to switch to employers already offering EWA.

Employer retains control & sets

• % of salary that can be accessed during the month.

• Amount of the minimum and maximum loan application

• Number of loan applications permissible during the month

• The period that the “window” for loans is open.

SA Companies Already Introduced

PnA, Sasol, Amrod, Bidvest, Smollan, Truworths Group, Sage, Switch Telecom, City Lodge, Sea Harvest, Total Energy, Macsteel, Continental Tires, Spar, Steers…

Critical Illness Cover

Critical illness cover provides employees with a lump-sum payment upon diagnosis of severe illnesses such as cancer, heart attack, or stroke. This benefit offers financial flexibility, allowing recipients to use the funds for any expenses during illness or recovery.

For employers, offering this cover enhances the employee value proposition (EVP), supports well-being, and helps attract and retain talent. Group critical illness cover is cost-effective, especially when provided as a standalone benefit or as an accelerated benefit on group life cover, which further reduces costs.

Why It Matters

- Rising Cancer Incidences: Global cancer rates are climbing, with South Africa’s new cases projected to double by 2030

- Financial Protection: Even with medical aid, employees face significant outof-pocket costs Critical illness insurance bridges this gap, reducing financial stress and enabling focus on recovery. Lump-sum benefits can cover mortgage payments, childcare, and experimental treatments often excluded from standard healthcare plans.

Aspect

Purpose

Coverage Type

Payment Structure

Medical Aid

Covers day-to-day medical expenses and hospital costs

Ongoing healthcare costs, subject to limits

Monthly premiums: claims paid per service/insured

Benefit Form Pays actual medical bills up to limits

Scope of Illnesses

Financial Role

All illnesses/injuries within plan limits

Reduces out-of-pocket medical costs

Regulation Medical Schemes Act

Conclusion

Critical Illness Cover

Lump-sum payout for specified critical illnesses

Financial support for major illnesses

Monthly premiums: payout to insured

Benefit can be used for any purpose

Limited to listed critical illnesses

Income replacement, lifestyle adjustments

Long-term Insurance Act

Critical illness cover is a valuable, cost-effective addition to employee benefits, providing essential financial protection and supporting workforce stability. It complements medical aid by addressing gaps in coverage and offering flexibility during challenging times.

Speak to Axiomatic Benefit Consultants to arrange this important value add for your employees by clicking here

PAYMENT OF CONTRIBUTIONS TO PENSION, PROVIDENT, RETIREMENT, MEDICAL AID OR SIMILAR FUND

Employers have long been required under section 13A(3) of the Pension Funds Act to pay all retirement fund contributions no later than seven days after the end of the month for which the contributions are due. This timeline has been the established and accepted market practice.

However, in the 13 January 2026 Government Gazette, the Minister of Employment and Labour withdrew the 2003 BCEA determination that previously exempted employers from complying with section 34A of the Basic Conditions of Employment Act (BCEA). With the withdrawal of this exemption, section 34A now fully applies, and it introduces two separate timeframes for the payment of contributions:

1. Employee-deducted contributions

If an employer deducts any amount from an employee’s remuneration for payment to a benefit fund, the employer must pay the deducted amount to the fund within seven days of making the deduction.

2. Employer contributions (non-deducted amounts)

If the employer makes a contribution not deducted from the employee (i.e., the employer’s own contribution), the employer must pay the contribution within seven days after the end of the period to which the contribution relates.

IMPACT OF THE CHANGE

Employers are now subject to dual compliance obligations under:

1. The Pension Funds Act

Requires payment within seven days after month-end. Non-compliance may result in fines of up to R10 million and enforcement action. In addition, late payment interest is automatically calculated by the retirement funds from the 1st of the month where contributions are not remitted by the 7th of the month following the month to which the contributions relate.

2. The BCEA (Section 34A)

Introduces shorter timeframes for employee deductions (7 days from payday). Labour Inspectors may issue compliance orders and impose administrative penalties for non-compliance. These two frameworks effectively operate in parallel, and employers must comply with both.

AXIOMATIC’ S RECOMMENDATION

To avoid conflicting timelines and reduce compliance risk, we recommend that employers adhere to the shortest applicable timeframe that is to pay all employee-deducted contributions to benefit funds within 7 days of payday. Doing so ensures full alignment with the BCEA and minimises exposure under both regulatory frameworks

We do not consider it likely that the industry will challenge this rule as:

1. The failure to pay retirement fund contributions has become a national crisis (R5.2bn unpaid contributions across employers), which undermined the two-pot retirement reforms.

2. The Minister published a notice requiring written representations (public comments) when she announced the intention to withdraw the exemption on 18 August 2025. There is no published record of any major industry association or employer federation opposing the timeline.

3. The change received the support of all Nedlac Labour Law Reform Task Team constituencies.

Are facial recognition Time & Attendance systems legal?

Several of Axiomatic’ s clients have either implemented or are considering implementing Time and Attendance (T&A) systems that integrate with payroll.

While there is no single authoritative public statistic detailing the exact percentage of T&A systems sold in South Africa by biometric modality (fingerprint versus facial recognition), we know that many clients are exploring facial recognition solutions.

Industry signals indicate that facial recognition has gained significant traction in new system sales, even as fingerprint technology remains dominant in the installed base. Global market data reinforces this trend: in 2024, contactless modalities such as facial, iris, and voice recognition accounted for over 58% of new installations worldwide, driven largely by post-pandemic hygiene considerations and the convenience these technologies offer

Against this backdrop, we believe it is important to highlight the implications of a recent court case in Kenya. Norton Rose Fulbright has published a clear and concise analysis of this case, which we have reproduced in full below.

Employer’s use of facial recognition declared unconstitutional in Kenya

Norton Rose Fulbright

Facial recognition technology is becoming increasingly common in South African workplaces for maintaining attendance and security, but is it legally permissible?

In November 2025 the Kenyan courts found that an employer’s use of facial recognition is unconstitutional and unlawful. Let’s unpack why.

As we learn from the Kenyan court’s approach to the use of facial recognition it is important to bear in mind that South Africa’s Constitution protects the right to privacy and that South Africa’s data protection laws, including the Protection of Personal Information Act treats biometric information such as facial recognition, as ‘special personal information’.

Background

The Kenya Broadcasting Corporation (KBC) introduced a mandatory facial recognition attendance system for all employees, set for implementation in September 2025. The Kenya Union of Journalists challenged this rollout, citing lack of employee consent, inadequate information on data protection, ignored union requests for consultation, absence of a Data Protection Impact Assessment, undisclosed vendor details, and concerns over data being accessible to unknown third parties.

The right to privacy and data protection reaffirmed

The court considered whether KBC’s actions violated constitutional and statutory privacy requirements. Article 31 of the Kenyan Constitution protects the right to privacy, and the Data Protection Act, 2019, mandates strict safeguards for sensitive data like biometrics. The court emphasised that a Data Protection Impact Assessment is mandatory for new technologies involving such data, and that informed consent, transparency, and disclosure are essential for lawful processing, as these requirements collectively serve to ensure that individuals retain autonomy over their personal information and that any intrusion into their privacy is justified, proportionate, and compliant with both constitutional and statutory obligations.

Failure by the employer to comply with data protection laws

The court found that KBC failed to obtain informed consent, did not conduct the required impact assessment, ignored requests for consultation, and withheld key information about the system and its vendor. These failures amounted to both procedural and substantive violations of the law. The court referenced its earlier decisions, reiterating that the right to privacy is a firm constitutional guarantee. Any deployment of intrusive technologies such as facial recognition must strictly comply with legal safeguards, including impact assessments, informed consent, and robust data protection measures.

The employer’s use of facial recognition declared to be unconstitutional and unlawful

As a result, the court declared KBC’s biometric system unconstitutional and unlawful, prohibited its implementation until all legal requirements are met, cancelled the rollout, and ordered the deletion of all collected biometric data under official supervision.

Significance for South African Employers

This judgment serves as clear notice to South African employers that adopting biometric or facial recognition technology must be managed with full transparency, meaningful employee engagement, data protection and thorough vendor vetting. Failure to comply with privacy protection principles could render such systems unlawful and expose employers to significant legal and reputational risks

2026 SOUTH AFRICAN SALARY INCREASE FORECAST: JANUARY UPDATE

In early November 2025, we published our 2026 South African Salary Increase forecast, outlining the methodology used to project future inflation and to determine a real salary increase. At the time, our forecast indicated a 5.00% salary increase for 2026. The full article can be read by clicking the below link.

As we approach the budgeting season for 2026, the dreaded question will soon be asked:

“What 2026 salary increase can we use for the Ghana budget?”

While forecasting salary increases for 2025 proved challenging due to high inflation rate, the outlook for 2026 appears more stable and predictable. This report outlines the economic context, inflation trends, and our preliminary salary increase forecast for Ghana in 2026.

As we approach the budgeting season for 2026, the dreaded question will soon be asked:

“What 2026 salary increase can we use for the Nigeria budget?”

Implementing a salary increase that is fair to all stakeholders in Nigeria has been a significant challenge in recent years. The primary reason has been the persistently high inflation rate. In 2024, the average inflation was 33.2%, and we forecast an average of 21.06% for 2025.