Focus on income definition on the Ingwe Option

 

Below is information about the income definition on the Ingwe Option.

For those enrolled in the Ingwe Option, the calculation of your contributions is based on the higher gross income between you and your spouse or partner, provided that he or she is included in your membership plan. This means that if both you and your spouse or partner are covered under the same membership, the greater of the two incomes will be taken into account to determine how much you need to contribute.

In order to process your application for membership or any changes to your benefit options, it is essential that you provide all the requested information on the Declaration of Income form. This includes detailing the source of your income and supplying your income tax reference number. Without this information, we will be unable to proceed with your application.

How do we define income? For the purpose of calculating your contributions, we define income as any sum that is either received by or is due to you, your spouse, or partner, assuming he or she is part of your membership. This definition encompasses a wide range of income sources, ensuring that we have a comprehensive view of your financial situation.

Income includes, but is not limited to, several categories. First, it covers the average salary, commission, or bonuses earned over the past twelve months from employment or self-employment, regardless of whether this work is in the formal or informal sectors. Additionally, any earnings from providing services or goods—such as those from part-time jobs, contract work, freelancing, or temporary positions—are also considered. Furthermore, all interest and dividend income, as well as any revenue generated from leasing assets or properties, fall under this definition. Payments received from pension funds, provident funds, retirement annuities, or any annuities are included too. Distributions from discretionary or vested trusts, as well as any amounts received from social assistance programs, such as old age pensions or disability grants, are also counted. In essence, all other forms of income received by you or your spouse or partner will be taken into account when determining your contributions.

What proof of income do we need from you? To substantiate your income claims, you will need to provide specific documents as outlined below. It is important to note that these documents are required for both you and your spouse or partner if he or she is included in your membership.

If you are employed, you must submit copies of your most recent payslip or IRP5 certificate. In cases where your income fluctuates, you should provide copies of your last three months’ payslips. For individuals earning income from the provision of services or goods, it is necessary to submit copies of your last three months’ bank statements from all your accounts, along with an affidavit affirming your employment status and confirming that these are your only bank accounts.

For those who are self-employed, you will need to present the latest audited financial statements of your business, as well as the last three months’ bank statements for both personal and business accounts. An affidavit confirming your self-employment status and that these are your only bank accounts is also required. If you are currently unemployed, you must provide proof of your UIF registration, copies of your last three months’ bank statements, and an affidavit stating that you are unemployed and that these are your only bank accounts.

If you are a student, you will need to provide proof of your enrollment in full-time studies at a registered academic institution. For pensioners, documentation proving your annuity or pension income is required; a letter from SASSA will be accepted for this purpose. Additionally, you must submit copies of your last three months’ bank statements and an affidavit confirming your pensioner status and that these are your only bank accounts.

Please note that if you receive a one-time payment, such as a bonus, and this amount is included in the three months’ payslips you submit, we will not factor this one-time payment into your income calculation. We may request additional payslips if this information is not adequately reflected in the three-month documentation you provide.