Judge Stops Finance Ministry From Ending Payroll Deduction System
High Court judge Hannelie Prinsloo has directed that the government’s payroll deduction system must remain in operation, putting a temporary stop to the Ministry of Finance’s plan to phase it out by the end of November 2025.
In her order, Prinsloo instructed the ministry not to block or interfere with the addition of new deductions on the Payroll Deductions Management System (PDMS). She further ruled that no instructions should be issued to prevent new deductions from being loaded onto the system.
The ruling means the PDMS, whether run with or without Avril Payroll Deduction Management (Pty) Ltd, must continue functioning as it did at 17:00 on 29 August 2025. This will remain in place while the court considers a case brought by Entrepo Finance. The lender dragged the Ministry of Finance and 36 other parties to court after government announced plans to shut down the long-standing payroll deduction platform.
The ministry had earlier indicated it would discontinue all payroll deductions for civil servants, with a complete shutdown of the PDMS set for 30 November 2025. However, in October it announced that consultations with affected stakeholders would continue until 28 February 2026.
Government’s proposal to phase out the deduction system has stirred mixed reactions. Some civil servants fear that losing the service will make it harder to pay their loans on time and push them toward unregulated lenders. Others believe ending the system could help reduce excessive borrowing.
