My company maternity policy states they will only pay me 50% of my basic salary while on leave, lets say R10. They paid me in full but if I leave I have to pay the 50% back that I was not entitled to. When they paid me in full I received my salary after tax, let's say R8. Now that I resigned they want the balance of the 50% paid back to them before tax earning. Is this double taxation as I earned after tax but must pay back pre- tax? I think I should pay them R4 back but they want R5 I.e. half of the R10 salary.
You would be able to claim the amount paid back as a tax deduction on your return so in essence you will not have to pay double tax because you will claim the amount. However tell your employer that you will pay them the equivalent back of what it would have been had you earned half only after tax.
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