What is a settlement period?

The expression settlement period is often used in association with payment of prepayment deductions and employer’s contributions. There are six settlement periods a year.

Each period is two months long:

  • January-February, 
  • March-April, 
  • May-June, 
  • July-August, 
  • September-October and 
  • November-December. 

The settlement periods also determine payment deadlines. Settlement periods are also called instalments.