CTC Calculator

Cost-to-company (CTC) is the total annual amount an employer spends on an employee. It includes the employee's gross salary plus all employer contributions such as UIF (1%), SDL (1%), employer pension contributions, and employer medical aid contributions. CTC is commonly used in South African job offers and salary negotiations. The actual take-home pay is always lower than the CTC figure because employer costs are deducted first, followed by employee deductions like PAYE, UIF, and pension.

A typical South African CTC package includes: basic salary (the largest component, usually 65–75% of CTC), employer UIF contribution (1% of salary, capped at R177.12/month), Skills Development Levy / SDL (1% of total remuneration), employer pension or provident fund contribution (commonly 7.5% of salary), employer medical aid contribution, and sometimes a car allowance or other benefits. Understanding what's included in your CTC is critical because a high CTC with generous employer benefits results in a lower gross salary for the same total cost.

To convert CTC to net take-home pay: (1) Subtract employer costs from CTC — employer UIF (1%, capped), employer SDL (1%), employer pension contribution, and employer medical aid contribution. This gives you your gross salary. (2) Calculate employee deductions from gross salary — PAYE (using SARS tax brackets after pension deductions), employee UIF (1%, capped at R177.12), and employee pension contribution. (3) Deduct all employee costs from gross salary to arrive at your net take-home pay. This calculator automates all these steps using current SARS 2025/2026 rates.

Yes, both sides of UIF are typically included in a CTC package. The employer UIF contribution (1% of salary, capped at R177.12/month) is deducted from the CTC to arrive at your gross salary. The employee UIF contribution (also 1%, same cap) is then deducted from your gross salary before you receive your take-home pay. So in total, UIF costs 2% of salary up to R354.24/month — half paid by your employer from the CTC, half deducted from your payslip.

A typical South African CTC package breaks down roughly as follows: Basic salary — approximately 68–72% of CTC; Employer pension contribution — approximately 7–8% of CTC; Employer medical aid — approximately 5–8% of CTC (varies greatly); Employer UIF — less than 1% of CTC (capped at R177.12/month); SDL — approximately 1% of CTC; Other benefits (car allowance, etc.) — 0–10%. The exact split depends heavily on your employer's benefit structure and the level of medical aid and pension contributions they offer. A CTC with generous benefits will result in a lower gross salary than one with minimal employer contributions.