Updated PAYE Reconciliation Specs for 2026 Tax Year

SARS has published version 24.0.0 of the PAYE Employer Reconciliation BRS—and it includes important updates you'll need to apply from 1 March 2025. This version outlines how payroll data must be structured for EMP501 reconciliations and IRP5/IT3(a) tax certificates.

🔍 What’s New?

Here’s a quick look at the key changes:

✅ New source codes added

• 3623 / 3723 – Likely new lump sum or directive-related codes

• 4042 – A new deduction or fringe benefit code

• 4588 / 4589 – Possibly related to ETI or special incentives

✍️ Amended descriptions

• 3020 – Nature of person

• 3907 – Previously used for retirement lump sums; now updated to align with directive rules

⚙️ Updated validations

• 3230 (Directive number) and 3232 (Directive income source code) now include rules for the newly added source codes, especially for 2026 onward.

🧾 Why It Matters for You

If you manage payroll submissions or prepare EMP501s, these changes affect:

• How your payroll software generates IRP5/IT3(a) tax certificates

• Directive compliance for retirement, severance, or lump sum payments

• Validation checks before submission via e@syFile™ or eFiling.