Advantages of paying for own medical aid rather than employer's contributions?
By Marc Sevitz · Updated
In both instances, the Total Cost to Company would stay the same - I understand that the contribution from the employer does not get deducted from the income earned and thus the tax on income earned stays the same, apart from the tax credit for independents. If this is correct, it would seem that the only benefits would be that the employee receives monthly tax credits rather than once per year.
Please clarify the above?
You are correct, the only difference is the timing of the credit and therefore the nett salary each month paid to you.