Medical aid is a form of medical insurance cover taken against your personal or your family dependents such as minor children, wife or husband, where you pay a monthly premium or contribution amount in return for financial cover for medical treatment you may need, as well as any other agreed upon related medical expenditures.

For the current financial tax year, i.e from the 1st of March 2024 to the 28th of February 2025, the South African Revenue Services allows a maximum deduction of R364 for the contributing tax payer without any other additional beneficiaries on the same medical aid scheme.

If there is a second beneficiary on the medical aid, such as a spouse, a further R364 can be deducted from the tax payers overall personal tax liability,

If there is more than one additional beneficiary, then the amount to be deducted for each additional beneficiary such as a minor child, is R264.

Please note, an actual cash refund cannot be claimed from SARS for medical aid contributions made nor can tax credits be carried over to the following tax year.

Contributions made by an employer, for the benefit of an employee, shall be included & disclosed under taxable earnings for the employee.

However, a tax credit, of R364 for the main beneficiary shall be used to reduce the employees overall personal tax liability.

If there is an additional beneficiary, such as a spouse, then the employees tax credits shall be increased by another R364.

If there is other beneficiaries such as minor children dependents, then that employees tax credit shall be increased by a further R264 for each additional minor children.