PAYE / UIF / SDL Calculator

PAYE (Pay As You Earn) is the income tax that employers withhold from employee salaries each month and pay over to SARS. Every employer registered with SARS must deduct PAYE from employees whose earnings exceed the annual tax threshold.

UIF (Unemployment Insurance Fund) is calculated at 1% of the employee's gross remuneration, capped at a monthly remuneration ceiling of R17 712. The employer contributes an additional 1%, making the total UIF contribution 2% of remuneration up to the ceiling.

SDL (Skills Development Levy) is a compulsory levy of 1% of total employee remuneration paid by employers whose annual payroll exceeds R500 000. It funds the National Skills Fund and relevant SETAs to develop workforce skills.

Contributions to a pension or provident fund are tax-deductible up to 27.5% of the greater of remuneration or taxable income, subject to an annual cap of R350 000. This deduction reduces taxable income and therefore lowers your monthly PAYE.

Medical tax credits (Section 6A) are fixed monthly amounts that reduce your tax liability. For 2025-2026, the credit is R364 per month for the main member and first dependant, and R246 per month for each additional dependant.