An unexpected salary overpayment may feel like a windfall, but employees could be required to pay the money back. Here’s what South African workers should know about payroll errors, deductions and repayment arrangements.
Imagine checking your bank account on payday, expecting your usual salary, only to find that a significantly larger amount has been deposited. Your first instinct might be to celebrate, pay off debt or quietly transfer the extra cash to savings, hoping nobody notices.
In South Africa, however, a payroll error is not a lottery win. Employees may assume that if an employer makes the mistake, they are entitled to keep the windfall. But an overpayment can generally be recovered by the employer.
Here is what you need to know if your company accidentally overpays you.
Under South African common law, retaining money to which you are not entitled may fall under the principle of unjust enrichment. In general, if you have been enriched at your employer’s expense without a valid legal basis, the employer may be entitled to recover the money.
