Two different laws set two different minimums — and since tax law requires longer retention, that's the number that should drive your policy.
The Basic Conditions of Employment Act requires employers to keep employment records — including pay, hours worked and leave — for at least 3 years after the record was made, or after employment ends.
SARS can audit up to 5 years back, so PAYE, UIF and SDL records — including EMP201/EMP501 submissions and supporting payroll data — should be retained for at least 5 years to be able to respond to any query or audit.
Digital records are fully acceptable and, in practice, far easier to retain reliably for 5 years than paper. Cloud payroll software keeps historical payslips, submissions and records automatically, without a physical filing system to maintain.
The BCEA requires employment records to be kept for at least 3 years after termination. Tax-related payroll records must be kept for 5 years, since SARS can audit up to 5 years back.
Digital records are fully acceptable and generally easier to retain reliably for the required period.
Both apply — BCEA records must be kept at least 3 years from when they were made, and tax records at least 5 years, whichever is relevant to the document.
TSS Payroll retains every payslip, submission and record automatically — no filing cabinet, no lost paperwork.
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