How much of my salary will go to NHI?

The amount deducted from your salary for the NHI will depend on several factors, including your income level, tax contributions, and the specific NHI funding model adopted by the government. Here’s a breakdown of the anticipated NHI contribution amounts based on current proposals:

1. Payroll Tax Contribution

The Department of Health has proposed a payroll tax of around R1,500 per month for formally employed South Africans. This means that if you’re employed and earn an average salary, you’ll likely see this amount deducted from your paycheck monthly.

2. Income Surcharge

For those earning above a certain threshold, a 2% income surcharge will apply. For example, if you earn R26,000 per month, the surcharge would cost approximately R1,040 per month. This surcharge ensures that higher-income earners contribute a proportional amount to the NHI Fund.

3. Removal of Medical Aid Tax Credits

Currently, taxpayers can receive a tax credit of R364 per month if they contribute to a medical aid. However, the NHI plan includes the removal of this tax credit, effectively increasing an individual’s tax burden by R364 each month. This will further impact monthly take-home pay, particularly for those who currently rely on medical aid tax relief.

4. Employer Contributions

Employers will also contribute to the NHI by matching their employees’ payroll tax contributions. This employer contribution does not directly affect your paycheck but represents a significant shift in how health funding is structured in South Africa.

Example: Monthly NHI Contribution for an Average Earner

To provide a clearer picture, here’s a sample calculation of the expected monthly NHI contribution for someone earning R26,000 per month:

  • Payroll Tax: R1,500
  • 2% Surcharge: R1,040
  • Loss of Medical Aid Tax Credit: R364

This comes to a total of R2,904 per month that would effectively go towards the NHI Fund, including the additional impact from the removal of the tax credit.

Who Doesn’t Have to Contribute?

Individuals below a specified income threshold are expected to be exempt from direct payments to the NHI Fund, helping ensure that lower-income earners still receive access to essential health services without an added financial burden. This detail aligns with the NHI’s goal to make healthcare equitable and accessible for all South Africans.

What Services Won’t Be Covered by the NHI?

It’s important to note that medical schemes will only be allowed to cover top-up services that are not covered by the NHI. This means that if you wish to continue with medical aid, it will only be to cover specific services outside the NHI’s coverage. Medical schemes will be relegated to paying for benefits with non-NHI contracted providers, which may limit their use compared to their current role.

Preparing for the NHI: How to Budget for This Change

The NHI represents a shift in how healthcare will be funded and accessed in South Africa. For many, these additional contributions will require adjustments in budgeting and planning for healthcare needs. Here are a few tips to consider as you prepare:

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  • Review Your Monthly Expenses: Assess your current expenses and determine how the estimated NHI contribution will impact your budget.
  • Consider Health Savings: If you’re currently on a medical aid, start exploring how the NHI will change your coverage needs.
  • Stay Updated on NHI Developments: The exact contribution requirements may evolve as the NHI rolls out, so staying informed will help you plan effectively.

 

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Complete Guide to NSFAS Online Loan Application for South African Students (2025)

If you are a South African student looking to pursue higher education but are facing financial difficulties, the National Student Financial Aid Scheme (NSFAS) is one of the most accessible funding options available. NSFAS provides financial aid in the form of bursaries and loans to qualifying students at public universities and TVET colleges in South Africa.

This guide will walk you through everything you need to know about the NSFAS loan application process, from eligibility requirements to application steps and frequently asked questions.

📌 What is NSFAS?

The National Student Financial Aid Scheme (NSFAS) is a government-funded financial aid scheme aimed at helping students from low- and middle-income households to access tertiary education without the burden of upfront fees.

NSFAS offers both bursaries and income-contingent loans:

  • Bursaries: For eligible students who meet academic and household income criteria (especially for TVET and university students).
  • Loans: For students who do not meet all bursary criteria or who are pursuing postgraduate qualifications not funded under bursary schemes.

✅ Who Qualifies for an NSFAS Loan?

To qualify for an NSFAS loan (especially for postgraduate students or programs not funded under the bursary system), you must:

  • Be a South African citizen.
  • Be financially needy, with a household income of less than R350,000 per year.
  • Have a valid South African ID.
  • Be enrolled or accepted to study at a public university or TVET college.
  • Not be funded through another bursary program that covers all expenses.
  • Maintain satisfactory academic progress (returning students).

📚 Courses Funded by NSFAS

NSFAS primarily funds undergraduate qualifications, but certain postgraduate programs (e.g., PGCE, postgraduate diplomas in education, and professional courses like LLB) may be considered under the NSFAS loan scheme, not bursaries.

If you’re studying:

  • Undergraduate degree or diploma: You are likely eligible for a full NSFAS bursary.
  • Postgraduate study: You may qualify for a loan, depending on the course and funding availability.

📄 Required Documents for NSFAS Application

When applying, make sure you have the following documents scanned and ready:

  1. Certified copy of your South African ID or Smart Card.
  2. Parent(s) or guardian(s) ID documents.
  3. Proof of income (latest payslips, UIF, or affidavit if unemployed).
  4. Consent Form signed by your parent(s)/guardian(s) to allow NSFAS to verify income.
  5. Proof of registration or acceptance at a public institution.
  6. Academic transcripts (for continuing or postgraduate students).

🖥️ How to Apply for an NSFAS Loan Online

Step-by-Step NSFAS Online Application Process (2025)

  1. Visit the NSFAS Website

    Go to: https://www.nsfas.org.za

  2. Create an Account

    • Click on “MyNSFAS” and register your profile.
    • You’ll need a valid email address and South African cellphone number.
    • Choose a strong password and verify your account via email or SMS.

  3. Login and Start the Application

    • After registration, log in to your MyNSFAS account.
    • Click on “Apply” to begin a new application.

  4. Fill in Your Personal Details

    • Input your ID number, name, surname, and other details exactly as they appear on your ID.
    • Provide household income information and living arrangements.

  5. Upload Required Documents

    • Upload all supporting documents in PDF or JPEG format.
    • Each document must be clear and under the size limit specified.

  6. Submit Your Application

    • Review your application for accuracy.
    • Click “Submit” and wait for a confirmation message.

  7. Track Your Application

    • Log in regularly to check your application status.
    • You will be notified via SMS and email at each stage of the process.

🗓️ Important NSFAS Dates (2025)

  • Application Opening Date: September 1, 2025
  • Application Deadline: January 31, 2026
  • Appeals Period: February 2026 (if rejected)
  • Disbursement: After registration and approval

Note: Dates are subject to change; always confirm on the official NSFAS website.

💸 What Does the NSFAS Loan Cover?

NSFAS funding typically includes:

  • Tuition fees
  • Registration fees
  • Accommodation (if living away from home)
  • Meals and transport
  • Learning materials (e.g., textbooks)

For loans, repayment is only required once you start working and earn above a threshold (around R30,000 annually, but subject to change).

🔄 NSFAS Loan Repayment

Repayments are:

  • Income-contingent – you only repay when you can afford to.
  • Administered by DHET (Department of Higher Education and Training).
  • Interest-bearing, but interest rates are low and favorable.

You can also apply for a partial loan conversion to a bursary if you perform well academically.

🔁 How to Appeal a Rejected NSFAS Application

If your application is rejected, you may submit an appeal via your MyNSFAS portal:

  1. Log into your MyNSFAS account.
  2. Click on “Track Funding Progress”.
  3. If rejected, click on “Submit Appeal”.
  4. Upload any missing or corrected documents.
  5. Provide a clear explanation or motivation.

📱 NSFAS Contact Information

📝 Final Tips Before Applying

  • Apply early to avoid system overload near the deadline.
  • Use your own email and cellphone number (do not use someone else’s).
  • Double-check that all your documents are certified and legible.
  • Keep a copy of your submission confirmation for reference.

By following this guide, you can confidently apply for NSFAS funding and move one step closer to achieving your academic and career dreams—without the burden of immediate financial pressure.

 

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