PAYE (Pay As You Earn) in South Africa
Tax & Compliance
Explained Simply
Every employer in South Africa must register for PAYE and deduct tax from employees' remuneration based on SARS tax tables. The deducted amount depends on the employee's annual income, age-based rebates, and medical aid tax credits. PAYE must be paid to SARS by the 7th of the month following the payroll period via an EMP201 return. At year-end, employers submit an EMP501 reconciliation.
Free Tool
PAYE / UIF / SDL Calculator
Calculate employee PAYE, UIF and SDL deductions with net salary and cost-to-company breakdown.
Related Terms
- UIF (Unemployment Insurance Fund)UIF is a South African social security fund that provides short-term financial relief to workers who become unemployed, ill, or on maternity leave. Employee and employer each contribute 1% of remuneration, capped at R17,712 per month.
- SDL (Skills Development Levy)SDL is a compulsory levy of 1% of total employee remuneration that South African employers pay to fund skills development and training programmes.
- IRP5 CertificateAn IRP5 is an employee tax certificate issued by employers in South Africa each tax year, summarising gross remuneration, PAYE deducted, pension contributions, medical aid, and other payroll deductions.