DISABILITY INCOME BENEFIT
As from 1 March 2015 the tax treatment of this benefit is as follows:
- The premium which the Employer pays for this insured benefit is regarded as a fringe benefit in your hands, so you will be taxed on the amount of the premium each month. This means that in effect the premium will be paid out of your after-tax income.
- However, should you become entitled to a disability income benefit, the monthly benefit you receive will be paid to you free of tax. This also applies to members already in receipt of a disability income benefit on 1 March 2015 – their income after that date will also be paid free of tax.