Update 16 March 2026 13:00
Our team has resolved the previously reported software issue.
We've released updated installation files on the Sage Portal.
- Sage VIP Classic Release 6.6a+
- Sage VIP Premier Release 6.6a+
- Premier ESS: v12.16.13.2
- Premier HR: v26.3.0.2
Note:
- The installer filenames include a + sign for Classic and Premier, and dates 2026/03/16.
- When accessing the system, there won;t be a data conversion if you already installed Release 6.6a before - the conversion only happens when updating from a lower version.
- When you install the new software, the version will reflect Release 6.6a+ on the Main Menu of any company.
- Total Solutions user will need to install new updates for Premier ESS and Premier HR for integration compatibility.
- After installing the update, the system will apply the correct tax deduction on any employees contributing more that R 29 166 towards a retirement fund
We sincerely appreciate your patience and understanding while we worked to address it.
Question: I updated to Release 6.6a previously. I don't have any employees contributing more than R29 166 towards a retirement fund. Do I need to install the update new update for Release 6.6a?
We'll always recommend to install the latest update.
If you prefer not to update now, we'll include the correction in our next software update, Release 6.6b in April 2026, and Release 6.7b in September. The system will backdate the corrected limit for affected employees.
Original post 13 March 2026
We've identified an issue that impacts South African employees who contribute more than R 29 166 towards a retirement fund (pension, provident or retirement annuity) on our new software update, Release 6.6a.
What is the issue?
Our latest software update (Release 6.6a) has an issue affecting retirement fund tax calculations for South African employees. The system uses last year's tax deduction limit rules (R 350 000 per annum) instead of the new, higher limits introduced in the 2026/2027 budget (R 430 000 per annum).
How will the issue be resolved?
- We'll release an updated version of Release 6.6a on Tuesday, 17 March 2026 on the Sage Portal.
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This will be a full installation and includes the fix for the deduction limit.
- For Total Solutions customers, there will also be new updates for Premier ESS and Premier HR
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Once you install the updated version, the system will correct the affected employees’ tax deductions and recalculate the tax.
Who is affected?
This impacts higher-earning employees who contribute more than R 29 166 per month toward a Pension, Provident, or Retirement Annuity fund.
What is the impact?
Because the system is using the older, lower limit, it doesn't allow the tax deduction up to R 35 833.25 per month. As a result, affected employees may be overtaxed on a portion of their income.
If you've already installed Release 6.6a and don't update to the new version released on 17 March 2026
Future releases scheduled for April (Release 6.6b) and September (Release 6.7a) will include the fix.
When you install a later update, the system will apply the correct limit and any affected employees will receive their full allowable deduction.
If none of your employees contribute above R 29 166
You don’t need to install the updated version immediately.
However, if you stay on the current version, the system will continue using the incorrect limit until you update. Once you install a newer release, the correct limit will apply. The system will recalculate the limit on all contributions from the start of the tax year.
