What is CTC? Convert your cost-to-company package to net take-home pay. See how employer UIF, SDL, pension, and medical aid reduce gross salary, then calculate PAYE and deductions.
See exactly how your CTC splits into salary, employer costs, and deductions
Latest tax brackets, rebates, and thresholds applied automatically
Understand what different CTC offers mean for your take-home pay
Cost to company (CTC) is the total amount your employer spends on you each year — gross salary plus employer UIF (1%), SDL (1% where applicable), employer pension, and employer medical aid. It is not your take-home pay. A R480,000 annual CTC might translate to roughly R30,000–R35,000 net per month after employer costs and PAYE, depending on benefits.
To convert cost-to-company to take-home pay in South Africa: subtract employer contributions (UIF at 1%, SDL where applicable, pension, medical aid) from CTC to get your cash salary. Then calculate PAYE on the taxable remuneration and subtract employee UIF and any employee pension deductions.
For example, a R40,000 CTC typically yields around R29 863,28 take-home before any employee pension contribution, depending on benefits structure, pension contributions, and medical aid. Use this calculator to get your exact number using current SARS 2026/2027 tax rates.
Key SARS deadlines: tax calendar.
Enter your CTC details to see your net pay
Enter your monthly CTC and click calculate to see how your package breaks down into take-home pay
A CTC offer includes far more than just your salary — here's how each component works
1%
Of salary, capped at R177.12/month. Deducted from CTC before gross salary is calculated.
1%
Of total remuneration, uncapped. Paid to SARS to fund skills development in South Africa.
~7.5%
Common employer contribution rate. Reduces CTC to gross salary and is tax-deductible for the employee.
Employer deductions from CTC
Employee deductions from gross
Common questions about CTC, employer contributions, and take-home pay in South Africa
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Accounter does not provide accounting, tax, business or legal advice. This calculator has been provided for information purposes only. You should consult your own professional advisors for advice directly relating to your business.