Document Code: NeftalyP141
Approved By: Chief Executive Officer (CEO)
Date Approved: 29 October 2025
Review Date: 28 November 2026
Policy Owner: Neftaly Chief Human Capital Officer, NeftalyCHCR
NeftalyP141-1 Overview
NeftalyP141-1-1 The Neftaly Human Capital Deductions Management Policy (NeftalyP141) provides a framework for managing all financial deductions applied to Human Capital compensation, benefits, and allowances. This policy ensures that all deductions are processed lawfully, accurately, and transparently in compliance with Neftaly’s internal financial governance and applicable laws.
NeftalyP141-2 Purpose
NeftalyP141-2-1 The purpose of this policy is to:
- NeftalyP141-2-1-1 Establish a uniform process for managing all deductions from Human Capital payments.
- NeftalyP141-2-1-2 Ensure deductions are authorized, accurate, and compliant with Neftaly and legal standards.
- NeftalyP141-2-1-3 Provide guidelines for documentation, approval, and dispute resolution.
- NeftalyP141-2-1-4 Promote transparency and fairness in payroll and financial operations.
NeftalyP141-3 Scope
NeftalyP141-3-1 This policy applies to:
- NeftalyP141-3-1-1 All Neftaly Human Capital, including Officers, Deputy Chiefs, Royal Directors, and Non-Executive Members.
- NeftalyP141 All-3-1-2 categories of deductions, including statutory, voluntary, and disciplinary deductions.
- NeftalyP141 All-3-1-3 Neftaly Royal Divisions and affiliated entities where remuneration or stipends are processed.
NeftalyP141-4 Policy Statement
NeftalyP141-4-1 Neftaly is committed to ensuring that all Human Capital deductions are processed fairly, accurately, and transparently. No deduction will be made from any payment without proper authorization, supporting documentation, and adherence to legal requirements.
NeftalyP141-5 Core Principles
- NeftalyP141-5-1 Legality: All deductions must comply with labor laws, tax regulations, and Neftaly’s financial policies.
- NeftalyP141-5-2 Transparency: All deductions must be clearly communicated to the affected Human Capital.
- NeftalyP141-5-3 Authorization: Every deduction must have proper approval before processing.
- NeftalyP141-5-4 Accuracy: Deductions must be calculated and verified to ensure correctness.
- NeftalyP141-5-5 Accountability: Officers and Royal Directors are responsible for ensuring compliance with this policy.
NeftalyP141-6 Types of Deductions
NeftalyP141-6-1 Statutory Deductions
These are mandatory deductions required by law, including:
- NeftalyP141-6-1-1 Income Tax (PAYE)
- NeftalyP141-6-1-2 Pension and Retirement Fund Contributions
- NeftalyP141-6-1-3 Social Security or Unemployment Fund
- NeftalyP141-6-1-4 Medical Aid or Insurance Contributions (where applicable)
NeftalyP141-6-2 Voluntary Deductions
These are deductions authorized by the Human Capital, including:
- NeftalyP141-6-2-1 Loan repayments or advances from Neftaly
- NeftalyP141-6-2-2 Charitable or community fund contributions
- NeftalyP141-6-2-3 Union or association membership fees
- NeftalyP141-6-2-4 Training or equipment repayments (if agreed upon in writing)
NeftalyP141-6-3 Disciplinary or Corrective Deductions
These deductions arise from policy violations or financial misconduct, such as:
- NeftalyP141-6-3-1 Loss or damage to Neftaly property
- NeftalyP141-6-3-2 Unauthorized leave or absenteeism penalties
- NeftalyP141-6-3-3 Repayment of overpaid amounts
NeftalyP141-7 Procedures and Processes
NeftalyP141-7-1 Deduction Authorization
- NeftalyP141-7-1-1 All deductions must be approved using the NeftalyF141-01 Deduction Authorization Form.
- NeftalyP141-7-1-2 Supporting documents (contracts, disciplinary reports, or loan agreements) must be attached.
- NeftalyP141-7-1-3 Authorization must be obtained from the Royal Director or CHCO before payroll processing.
NeftalyP141-7-2 Payroll Processing
- NeftalyP141-7-2-1 Approved deductions must be submitted to the Finance Division by the 20th of each month.
- NeftalyP141-7-2-2 Finance Officers must verify all details and update the NeftalyD141-01 Deduction Register.
- NeftalyP141-7-2-3 Deductions are processed automatically through the payroll system.
NeftalyP141-7-3 Record Management
- NeftalyP141-7-3-1 All deduction records must be retained for at least 5 years.
- NeftalyP141-7-3-2 Digital copies must be stored securely within the Neftaly Human Capital Repository System.
NeftalyP141-7-4 Dispute Resolution
- NeftalyP141-7-4-1 Human Capital may submit disputes using the NeftalyF141-02 Deduction Dispute Form.
- NeftalyP141-7-4-2 Disputes are reviewed within 10 working days by the CHCO.
- NeftalyP141-7-4-3 Resolutions are communicated in writing and logged in the NeftalyR141-01 Deduction Dispute Register.
NeftalyP141-7-5 Compliance and Audit
- NeftalyP141-7-5-1 Quarterly audits are conducted by the CHCO and Royal Finance Committee.
- NeftalyP141-7-5-2 Non-compliance findings are documented and corrective actions are implemented using the NeftalyR141-02 Deduction Audit Report Template.
NeftalyP141-8 Roles and Responsibilities
| Role | Responsibilities |
|---|---|
| Chief Executive Officer (CEO) | Provides strategic oversight and approves high-value or disputed deductions. |
| Chief Human Capital Officer (CHCO) | Ensures policy compliance, approves deductions, and manages disputes. |
| Royal Directors | Approve deductions within their divisions and monitor compliance. |
| Deputy Chiefs | Support verification, documentation, and communication processes. |
| Officers | Manage payroll data, maintain records, and process deductions accurately. |
| Human Capital | Review their payslips, report discrepancies, and submit required authorization forms. |
NeftalyP141-9 Documentation and Templates
- NeftalyP141-9-1 NeftalyF141-01: Deduction Authorization Form
- NeftalyP141-9-2 NeftalyD141-01: Deduction Register
- NeftalyP141-9-3 NeftalyF141-02: Deduction Dispute Form
- NeftalyP141-9-4 NeftalyR141-01: Deduction Dispute Register
- NeftalyP141-9-5 NeftalyR141-02: Deduction Audit Report Template
NeftalyP141-10 Compliance and Monitoring
- NeftalyP141-10-1 The CHCO and Royal Finance Committee will monitor compliance with this policy through audits and payroll system reports.
- NeftalyP141-10-2 Unauthorized or inaccurate deductions will be corrected immediately, with refunds processed where necessary.
- NeftalyP141-10-3 Breaches of this policy may result in disciplinary action against responsible personnel.
NeftalyP141-11 Review and Evaluation
NeftalyP141-11-1 This policy will be reviewed annually by the CHCO and approved by the CEO to ensure continued alignment with Neftaly’s financial integrity and applicable legal frameworks.
NeftalyP141-12 Frequently Asked Questions (FAQs)
Q1: Can deductions be made without the Human Capital’s consent?
A: Only statutory or court-mandated deductions can be made without consent.
Q2: How can I verify my deductions?
A: All deductions are listed on the payslip and can be reviewed through the Neftaly Human Capital Portal.
Q3: What if I disagree with a deduction?
A: Submit a Deduction Dispute Form (NeftalyF141-02) within 10 working days for review.
Q4: Who approves deduction requests?
A: The CHCO or Royal Director must authorize all deductions before payroll processing.
Q5: What happens if a deduction error is found?
A: The Finance Division will correct it in the next payroll cycle and issue a confirmation report.
Approved By:
Neftaly Malatjie
Chief Executive Officer