Bursaries are exempt from tax where:

• the bursary is granted to an employee who agrees to reimburse the employer for the bursary if the employee fails to complete his studies for reasons other than death, ill-health or injury, or
• the bursary is granted to a relative of an employee that earns less than R600 000 per annum and to the extent that the bursary does not exceed R20 000 (R30 000 for disabled relative) grade R to matric and R60 000 (R90 000 for disabled relative) for further education.