Beat the tax bracket creep with Teljoy
South Africans are finding themselves in ever-changing socioeconomic circumstances where the cost of living is climbing.
Still, salaries are not rising to meet consumer needs, and the tax bracket creep is growing year on year.
Every year, thousands of South Africans get a modest raise – just enough to keep up with inflation.
But thanks to the bracket creep (also known as fiscal drag), those raises often push you into a higher tax bracket.
Suddenly, your take-home pay does not go as far as you thought it would, and in real terms, you might even be worse off.
Let’s break it down:
- In 2024, you earn R30,000 per month (R360,000 per year)
- You fall into the 26% tax bracket, with tax payable of approximately R74,632 per year
- You get a 5% raise to help with inflation – your new salary is R31,500/month (R378,000/year)
- This bumps you into the 31% bracket, with tax payable of about R79,687/year
- That means R5,055 more in tax for R18 000 more in salary.
- Your real increase? Just R12,945 – or about 3.6%.
If inflation is sitting above 3.6% (which it likely is), you’ve effectively taken a pay cut.
This has become a chronic issue in South Africa, where the tax brackets have remained unchanged for several years.
Luckily, Teljoy offers a smarter way to spend your salary, allowing you to beat the impact of tax bracket creep and still access the things you love, stress and risk-free.
Teljoy – A smarter way to own, without the upfront cost
For over 55 years, Teljoy has helped South Africans furnish their homes, kit out their kitchens, and upgrade their entertainment with brand-new products – all without massive upfront payments.
Instead of spending R10,000 on a new appliance or smart TV, you can rent-to-own from as little as R299 per month.
Below, Teljoy shares several reasons why the rent-to-own model is a game-changer for cash-strapped South Africans, offering the ultimate flexibility and the freedom of choice.
- No big deposits. No credit strain.
Start using what you need now – and pay as you go.
- Month-to-month freedom.
You can upgrade, downgrade, or cancel whenever you want. Your plan flexes as life does.
- Repairs and maintenance? Already covered.
Built into the monthly cost, Teljoy includes maintenance cover, hassle-free replacements, and even your TV licence – so you avoid surprise costs.
- Own at your pace.
Don’t blow your budget trying to own it all today. Ease into ownership over time, and stay in control.
How to protect your pocket with Teljoy?
Shift from high upfront costs that strain your budget, to flexible, monthly-friendly payment models – hassle and stress-free.
Opting for monthly alternatives will ease the pressure on your wallet and keep your cash flow healthy – especially when prices rise faster than your salary.
While we wait for government policy shifts that correct this, there are a few other things you can do to soften the blow:
- Review your expenses – cut the fluff, renegotiate where you can
Start by going through your debit orders and monthly deductions.
Are there subscriptions you’re not using? Insurance premiums that could be re-quoted?
You’d be surprised how much “financial fluff” hides in plain sight.
- Delay major once-off purchases where possible
If it is not urgent, pause before you swipe.
Big purchases – like new appliances, electronics, or furniture – can wipe out your savings or blow your budget in one go.
Delaying these buys until you have planned for them (or found a more flexible way, such as Teljoy, to afford them) helps you stay financially stable when your income is under pressure.
The bottom line?
Bracket creep may be out of your hands, but your spending decisions aren’t.
In a high-cost world, Teljoy helps you stay flexible, protected, and in control.
It’s a smarter way to own, especially when the system isn’t playing fair.
Visit teljoy.co.za and take back control of your budget – one flexible choice at a time.
Loading ...