Monthly and annual medical scheme fees tax credit for your household.
Monthly credit
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Annual credit
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Members counted
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A credit, not a deduction, and why that matters
The medical scheme fees tax credit is one of the more misunderstood lines on a South African payslip. It is a credit, meaning it comes straight off the tax you owe, rand for rand. It is not a deduction, which would only knock a percentage off depending on your bracket. So a R974 monthly credit cuts your tax by R974 a month no matter what you earn. This calculator counts the members on your scheme and turns them into the exact monthly and annual credit you are entitled to claim.
The counting rule has a specific shape. The main member attracts one amount. The first dependant attracts the same amount as the main member. Every dependant after that attracts a lower amount. That tiering is why the credit does not simply scale in a straight line with family size, and getting the count right is the whole game.
How the per-member amounts stack up
Using the monthly amounts this calculator applies, the credit builds member by member. The main member and the first dependant each bring R364, and each further dependant brings R246. Confirm the current figures with SARS, since these are reviewed each year of assessment.
| Members on scheme | Monthly credit | Annual credit |
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Notice the jump from one to two members is the full R364, because the first dependant is rated like the main member. From the third member onward each addition adds only R246. A family of three therefore lands at R974 a month, which is R11,688 over the year, the default this tool loads. The chart makes the kink visible: the first two members climb steeply, then the slope eases.
Pro-rating, PAYE, and the year-end reconciliation
The credit is claimed monthly through PAYE when your employer runs your payroll, which is why it already shows up in your take-home pay rather than as a refund. If you only belong to a scheme for part of the year, the credit is pro-rated to the months you were actually a contributing member, so joining in July gives you the credit from July, not the full twelve months. At assessment SARS reconciles the credit you received through the year against what you were entitled to, and your medical certificate from the scheme is the document that proves the member count.
The mistake to avoid is counting people who are not registered dependants on the scheme. A child you support but who is on a different plan, or a relative covered elsewhere, does not add to your credit. Only the lives actually carried on your scheme count, which is exactly what your annual tax certificate will list.
It also helps to know who the credit belongs to when a family is split across two earners. The credit attaches to the person who pays the contributions and is registered as the principal member, so if one spouse carries the whole family on their scheme, that spouse claims the full household credit, and the other claims nothing for those lives. Splitting dependants across two schemes to claim two main-member amounts rarely pays off, because the first dependant is rated the same as a main member anyway, so the arithmetic usually nets out. Keep the family on one scheme unless there is a real benefit reason to split, and let the registered member claim the lot.
Can I claim the credit if my employer pays my contributions?
Generally the credit attaches to the person liable for the contributions and is given through the payroll, so where the employer pays the scheme on your behalf the credit is usually applied against your PAYE already. The fringe-benefit and credit treatment of employer-paid contributions has specific rules, so read your payslip and confirm the position with SARS rather than claiming it twice.
Is the credit different for pensioners?
The per-member credit amounts are the same regardless of age. What changes for taxpayers aged 65 and older, or those with a disability, is the additional medical expenses tax credit on out-of-pocket costs, which is more generous for that group. This calculator covers the scheme fees credit only; the additional credit is a separate tool.