Pensionable income is the income used by your employer to calculate your pension or provident fund contribution. This income will typically include any fixed remuneration (e.g. salary or wages) but may exclude variable amounts such as commissions, bonuses and overtime.
If you are a member of a pension or provident fund and all your remuneration (i.e. your salary, commission, bonus and overtime) is pensionable, then none of your remuneration is non-pensionable.
If you are a member of a pension or provident fund and all your basic salary is pensionable but your commission and bonus is not pensionable, then you may claim 27,5% of your commission and bonus as a tax free contribution to a retirement fund (subject to an annual tax deduction cap of R350,000 pa).
You can do this either my making an additional voluntary contribution to your workplace pension or provident fund (rules permitting) or by contributing to an RA.
If you are not a member of a pension or provident fund, all your remuneration is non-pensionable and you may claim up to 27,5% of your gross remuneration or taxable income (which ever is the higher) as a tax free contribution to an RA.
